The video-on-demand (VOD) market is a fragmented one. The top 10 VOD companies (Netflix, Amazon, YouTube, iTunes, Hulu, Home Box Office, Verizon Communication, Ericsson, Maxdome GmbH, and Canalplay) control only slightly more than 34% of the global market. Recently, the market fragmented even more, with new players entering the market, and old players adding services to attract subscribers.
Let’s look at the video-on-demand market by the numbers:
$1.58 billion: The amount of capital Disney controls in BAMTech, giving it a 75% stake in the company. BAMTech manufactures VOD platforms. The move comes as Disney ended its distribution deal with Netflix and plans to launch its own service in 2019. Netflix will have access to Disney films until 2020. “This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands,” Disney CEO Bob Iger said. The service will be available only in the U.S. and will feature both Disney films and television shows. Source: The Verge
$200 million: The amount Amazon paid for LoveFilm in 2011. Today, Amazon is planning to end the DVD renting service in the UK and Germany, the two remaining markets where it operates, at the end of October. The company cited a decrease in rentals over the past several years. In the U.S., Netflix still operates its DVD rental business, but probably not for long. In 2016, Netflix saw DVD rentals drop 7%, while subscription streaming jumped 23%. Source: Venture Beat
$5.99: The monthly subscription to cable network FX’s commercial-free VOD service for Comcast users. Called FX+, the service gives users access to all programs produced for FX and FXX as well as programming that aired on FX when the network was newly launched. FX acquired the rights to the latter group specifically so the programming could be offered on FX+. More than 1,000 episodes will be offered on the service. Comcast also recently added AMC Networks’ VOD service. Source: Broadcasting Cable
$12.95: The monthly subscription fee for Apple Music, which gives users access to Apple TV when it launches next spring. Only two shows are scheduled thus far – “Planet of the Apps” and “Carpool Karaoke”, but more will come soon, further to a reported $1bn investment in TV content. Apple began planning its VOD service in January. The goal is to create, “an entire cultural, pop cultural experience, and that happens to include audio and video,” Apple Music’s Jimmy Iovine said. Two Sony Pictures executives have been hired to help develop the service. Source: MacWorld
55%: The percentage of ad-break-revenue content partners on Facebook’s new VOD service Watch will receive. Facebook will receive the remaining 45%. The service became available August 10 in the US to a small group of testers. Facebook’s goal with the service is to have users frequently checking their newsfeeds for programming they can’t find elsewhere. As testing continues, the service will become available to more users. Facebook funded a percentage of the new programming, but most were funded by the content creators. Source: Tech Crunch
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