Report: OTT Video to Top Rental Market Share in 201514 Apr, 2015 By: Erik Gruenwedel
Subscription streaming is projected to account for 49% of the video rental market in 2015 — up 15% from 34% market share in 2013, according to new data from The Convergence Consulting Group Limited. SVOD services include Hulu Plus, Amazon Prime Instant Video, Netflix, HBO Now, CBS All Access and PlayStation Vue, among others.
The report estimates multichannel video program distributors will collectively lose 329,000 subscribers this year due to OTT video. The industry lost about 265,000 subs in 2014.
The coveted (by OTT video) broadband-only household totaled 22.7 million at the end of 2014, or 19% of the pay-TV market. Convergence forecasts more than 24 million (19.9%) broadband-only homes by the end of 2015.
The burgeoning over-the-top video market is also having an impact on other rental channels. The Toronto-based research firm estimates kiosks (Redbox) will grab 18% market share (down from 22% in 2013); 15% (19%) for transactional VOD (cable, satellite, telco); 6% (12%) by-mail; 6% (9%) for video stores; and 5% for iVOD (4%).
Convergence Consulting said movie and TV downloads generated 16% (from 8.3%) of total domestic packaged-media and electronic-sellthrough revenue in 2014.