WITHER SVOD?

There's been a lot of speculation about whether subscription video-on-demand (SVOD) services can demolish the networks' and cable channels' dominance over our viewing habits. At present, SVOD penetration is about 45%, with Netflix in the lead. However, Netflix just dumped a huge library of movies that are readily available on other platforms, and is focused on becoming a "premium" content supplier. This means exclusive original programming…and higher prices for subscribers. New competition is also entering the fray, including HBO's entry (HBONOW) and CBS's All-Access, which just announced plans for a new Star Trek series. What do you think the prospects are for SVOD? How far will it penetrate? And what impact will it have on the major broadcast networks and cable channels?


4 Comments


Frank Ferris
F&S Partners
Nov 24, 2015

With CBS now getting in on the act by its decision to launch a new "Star Trek" series via a SVOD platform, things will really get interesting. I see much more of this happening with the established TV content entities going for SVOD in a big way if the CBS initiative is successful.
Jack Lyon
BBN&P
Nov 10, 2015

I think that this time there is a great deal more resentment over advertising clutter of TV than is realized. The only limitation on SVOD penetration will be, as was said, the pricing. Netflix has already announced a big increase and others will, no doubt, follow suit.
Fred Hammersmith
CDE Enterprises, Ltd
Nov 05, 2015

I think that you are spot on, Mary. After all, look at the experience of pay cable, which seemed on its way to universal penetration, but leveled off way below that, in large part due to the subscription costs. Many people simply couldn't afford it.
Mary Duckworth
MD Consulting, LLC
Nov 04, 2015

I believe that there will be a limit to the penetration of SVOD, based mainly on the cost of subscription. As to what limit, I'd guess 65%, but I would like to hear what others have to say on the subject.

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