Analyst: SVOD Growth Leading to Media Consolidation

The subscription streaming video market has just expanded with the inclusion of Disney+ and Apple TV+ into a market controlled by Netflix, Amazon Prime Video and Hulu. And next year includes the addition of HBO Max and NBC Universal’s Peacock.

Heading into 2020, new projections from Strategy Analytics Television & Media Strategies suggests the SVOD market will consolidate with third-party traditional media companies eyeing a seat at the table through mergers and acquisitions.

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The London-based research firm says traditional domestic pay-TV operators will lose nearly 9% of their subscriber base in 2020 with third-party media companies eyeing mergers and acquisitions to remain relevant.

“As a result of the proliferation of broadband and connected devices consumers have more choices than ever in how, when, and where they connect with movies, TV, music, and games,” Michael Goodman, director, digital media strategies, said in a statement. “As consumer adoption of online alternatives grows the degree of disruption felt by traditional distribution models is accelerating.”

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