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As the video-on-demand (VOD) category grows ever more crowded, players will find it even harder to stand out. Sports and other live content may be the key.
A January 2017 survey of TV industry professionals around the world—over 45% of whom were from France, Germany, Italy, Spain and the UK—from Digital TV Europe found that nearly three-quarters identified sports and other “time sensitive” content as differentiating factors.
While live programming was the single most commonly cited feature for differentiation, a variety of other platform enhancements were noted by many of the survey respondents. More than two-thirds said that a reliable streaming experience without downloading issues was key—more than those who cited “offering a wide range of popular content” or even offering a service at a lower price point.
Worldwide, VOD revenues totaled $25 billion in 2016, according to data aggregated by Boston Consulting Group (BCG). This total included ad-supported, subscription-based and transactional content, as well as video distributed by digital offshoots of multichannel video programming distributors (MVPDs).
North America represented 57.2% of the global total at $14.3 billion. That percentage is close to the 59.7% of Netflix’s streaming revenues that came from the US in Q4 2016.
This is the latest installment in an ongoing series of quarterly video ecosystem overviews focusing on monetization, audience, platforms and content. Our goal is to provide a summary of key developments each quarter on a need-to-know basis.
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