US Streaming Video Market Tops $29 Billion, But Plenty Of Challenges Remain

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OTT streaming video companies had another big year of growth in 2021, according to PwC'. But the sector's complexity and competition may give traditional cable providers a chance to recapture customers with new kinds of bundles, including cloud-based gaming.

“In the medium term, shifts towards hybrid monetization methods, connected TV and free ad-supported TV channels will cement video’s role as the main driver of revenue between 2021 and 2026,” the report says.

“Our insights and forecasts suggest evolved packages that center around a broader definition of entertainment are in the future,” PwC’s C.J. Bangah, consulting principal on TMT Customer Transformation, wrote in an email interview from the Cannes Lions conference. “How we get from where we are today to that future is still being written. The pace at which new pricing models and packages are delivered are likely going to correlate to a few factors, including the broader economic environment.

The broadband customer relationship thus creates a beachhead that is “important because it allows cable to weather the storm of cable-cutting and cord-trimming as users move to using more stand-alone TV providers. Retaining these now lower-paying subs means that as the re-bundling of third-party services occurs, cable TV will be able to recoup these losses.

It could be a boon for the services too, because navigating between so many competing offerings “takes its toll on the performance of all of them. In order to grow revenue across all of these competing companies, it is necessary for a neutral aggregator to play the role of the consumer gatekeeper.”

 

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