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Issue link: https://digital.macdirectory.com/i/1488864
streaming services,” he noted. He explained that the largely untapped potential market isn’t averse to watching ads in exchange for free or reduced-price content. By retaining subscribers who would otherwise cut services to balance their budget and by capturing more of the 3.3B potential screen viewers, the streaming services can increase their ARPU (average revenue per user). The new ad-supported tier will help services adapt to a more challenging market. Subscription revenues may grow more slowly during the next two years, but the hybrid AVOD-SVOD tiers will produce significant ‘back-end’ revenue and significantly increase the firms’ profits. The increase in original content and the proliferation of digital platforms have increased the global OTT/VOD market. It’s a market advertisers are eager to reach, even at a higher CPM, because they know their marketing messages can reach a more targeted audience. And it is on its way through CTV (connectedTV). SVOD revenue losses by all service providers will be more than offset by AVOD sales. In the long run, it will diversify service providers’ business models, offering something for everyone. That will resonate with a broad range of users because they can understand value for their money/time, interesting content and quality video service. Despite all the good news, some consolidation (mergers and closures) will also be likely because some organizations are in disarray and don’t have a clear, well-defined view of tomorrow. For them, Waymond Wong’s observation in Everything, Everywhere All at Once comes to mind, “Most people only have a few significant alternate life paths so close to them. But you, here, you're capable of anything, because you're so bad at everything.” Stuff happens!