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Issue link: https://digital.macdirectory.com/i/1471136
about how many times a movie/ series is pirated. It’s not only money out of their pockets but it also means the rest of us foot their bill! Piracy costs streamers an estimated $30B plus every year and password sharing (freeloading) costs about $6B. It’s not free advertising! Every streaming service is saying enough is enough. Despite Netflix’s miserable numbers for the 1st quarter, the bottom didn’t fall out of SVOD…far from it. But SVOD has reached a point where it has to evolve. No one really knows what the next phase will look like, but everyone has an opinion. In August 1997, Netflix sent out its first red envelope (which started out white) and at their peak were sending out 12M DVDs a week. In 2007, the company turned on the streaming spigot. Demand for new, unique content grew to 221M plus. There are still 2M plus folks out there who want the envelope. When they were “the only game in town,” studios fell all over themselves to have them distribute their film/series titles … until executives figured out they could do that too and make even more money. In a little less three years, nearly all of the studios have reshaped their theatrical priorities and networks, moving from the day/time TV bundle to their own any time, any place, any screen service. They all want to be the place where a subscriber will go so they can charge a fee based on “the value” of their content (translation … as much as they can get). After all, $20/mo. is a lot less than the old $200/mo. subscribers used to pay for that overweight cable bundle. There are more than 300 SVOD/OTT services around the globe and that is expected to grow to 600 by 2025. All are focused on capturing their share of the 2B subscriber market by spending billions on “new, unique” content because … content is king. Streaming investments led by Comcast, Disney and Netflix saw the global spend on content reach $220 billion in 2021 with the pot set to exceed $230 billion in 2022, according to a new report from Ampere Analysis. In the US, 80 percent of TV households or 122.4M, have at least one SVOD service while the average number of services per household is four, according to Ampere Analysis. In addition, the average churn rate is 35 percent. Tough but tolerable. Consumers will spend about $82.5B this year for subscription video content or $69.49 ARPU (average revenue per user). But around the globe there