Omdia also took advantage of the first day of ATF 2023 to reveal new trends in the industry, where it highlighted concerns in the D2C streaming industry, with giants such as Netflix, Amazon and Disney recognizing that the standalone streaming model is ‘unsustainable’. The analysis focuses on global TV and video trends, as well as viewing habits in Asia.
Tony Gunnarsson, Senior Principal Analyst, OTT Video, Media & Entertainment at Omdia, thinks that during 2024, a pause in growth is anticipated, with a general reassessment of scale versus profitability in SVOD globally. Price increases in SVOD are expected to drive greater seasonal customer churn.
‘2023 marks a major shift toward online advertising as the primary driver of TV and video revenue. The rise of TikTok and the significant growth of ad-supported services (FAST) are highlighted. FAST’s global revenue is projected to reach $13 billion by 2028,’ he commented.
Steady market growth is seen, but concerns are raised about market saturation due to the proliferation of streaming services. User loyalty declines, with an increase in seasonal subscription and growing resistance to adding new services.
The conference also addressed changing consumer habits and the expected impact of price increases on streaming services. The online warning is set to surpass Pay TV revenues in 2023, with the emphasis on ad-supported services as the next growth phenomenon.
‘With these radical changes in the industry, a 2024 year of apparent stability is forecast, but with the certainty that market dynamics are constantly evolving. The transition to FAST and online advertising poses significant challenges to the traditional television and video model,’ he concluded.
