New research forecasts global OTT subscriptions will rise by 65% from the end of 2020 to 2025, bringing the subscription count up to nearly 2 billion. Juniper Research’s recent report, OTT TV & Video Streaming: Evolving Trends, Future Strategies & Market Forecasts 2020-2025, attributes the propelling force behind this rapid growth largely to traditional broadcasters crossing the divide into the realm of streaming.
Streaming platforms like NBC’s Peacock and CBS All Access are prime examples of traditional broadcasters turning to a more hybrid model of subscription and ad monetization. These streamers offer tiered subscriptions but are able to keep costs down by buying lower-end ads to run on the services. Juniper predicts these types of streamers will account for $1.4 billion of the advertising spend in 2025.
“Thanks to this high level of market saturation, streaming providers need to keep their offerings competitive to retain subscribers,” said research co-author Nick Hunt. “Hybrid monetisation is one way that VOD providers can keep their offerings low-cost, and therefore less likely to be dropped.”
Transitioning into the streaming world helps traditional broadcasters stay relevant, compete with big players like Netflix and Amazon Prime, and extend their reach into more households with streaming continuously growing to new heights.