“STREAMING SERVICES WILL INCREASE THEIR REVENUE BY $10 BILLION IN FIVE YEARS”
Video On Demand (VOD) is changing the face of the film and television industries. Today’s consumers expect quality video content without commercials, on their terms, and instantly. This means that VOD, which used to be a behind-the-scenes revenue stream, has found new life in streaming video. It has become so popular that hordes of consumers switch to streaming every day. In fact, according to a PriceWaterhouseCoopers’ (PWC) report recently released, VOD will overtake the US box office in revenue by 2017. This doesn’t mean the end to movie theaters, but it does mean that streaming is a significant source of revenue for premium video industries, including fitness, education, and motivational speaking. The following are PWC’s video predictions followed by some takeaways for how business’ can leverage this booming revenue stream.
1. PWC predicts online streaming services will reach $10.1 billion in revenue by 2018
- This means online streaming video services are one of the fastest growing video segments in the US.
- While VOD is overtaking the US box office in revenue, it won’t destroy it. VOD is becoming the top form of in-home entertainment.
- This number is driven by paid video subscribers.
- Adopt online streaming video as a revenue stream sooner rather than later. As more and more companies adopt streaming video the competition in this growing medium will grow fierce.
- Considering offering a subscription for your premium video content.
2. DVD and Blu-Ray sales will drop another $4 billion in revenue by 2018
- DVDs are dead. In fact, according to Uscreen customers, streaming video sells at a ratio of 4 to 1 compared to the outdated medium.
- Uscreen customer, Hoopnotica, was able to save big bucks by reducing its back stock of solid goods.
- Streaming video gives consumers more options – they can pay per instant video or subscribe to your product. Giving them options to watch video on their terms is exactly what today’s consumers want.
3. Spending on digitally delivered content will account for 16 percent of US consumer spending in 2018
- That number is huge! Consumers are spending money online for content delivered digitally and directly to them. If you are not there, then you’ll miss out.
- Customers want 24/7 access to video content.
- In PWC’s analysis, you can leverage these customers by providing them with more choices and unique experiences.
- Learn to use innovation and to quickly adapt to appeal to customers.
- Individualized services are key to keeping their attention.