As video streaming continues to be well-received by today’s digitally savvy entertainment consumers, subscription video-on-demand (SVoD) services continue to fiercely compete with one another.
Texas-based market research firm, Parks Associates, recently computed the streaming service providers. They substantiated that there are over 200 of these SVoD services.
In this cutthroat competition, with SVoD juggernauts Netflix and Amazon Prime Video on the lead, some of the weaker services should be ready to retreat.
These were the words of Sherry Brennan, the Distribution Senior Vice President at Fox Networks.
She pointed out that with nearly 200 niche services competing for a limited population of customers, some subscription streaming websites will soon be defeated in the battle.
Delivering a speech at the Streaming Media West Conference, the major streaming media congress, Brennan affirmed that only a few of these platforms can survive in the niche over-the-top (OTT) industry.
At this time, a small quantity of OTT, subscription-based services have over 100,000 subscribers, Brennan added as she spoke to the audience of the annual video technology-oriented event held at the Hyatt Regency in Huntington Beach, California.
The Fox Networks executive observed that, in general, subscription-based streaming platforms nowadays are experiencing an increased customer churn.
Clients terminate their relationship with these SVoD companies, closing their accounts, halting their membership, or cancelling their subscriptions.
Brennan said that this happens as these consumers become wiser on how to harness the vast numbers of available customer trial offerings that are free of charge.
Together with Michael Dale, the Executive Vice President of Media and Entertainment of Ellation Media, a subsidiary of WarnerMedia, she explained that this situation proves costly to the contending SVoD platforms.
In October, WarnerMedia made headlines in the entertainment scene when it made known to the public that it would close down three of its niche SVoD services.
Among these streaming platforms are classic movie streaming service, FilmStruck, the Korean drama SVoD platform, Drama Fever, and comedy hub, Super Deluxe.
Meanwhile, WarnerMedia is putting its resources on Ellation Media which is based in Silicon Valley. This firm operates the anime-oriented SVoD platforms VRV and Crunchyroll.
SVoD service providers are, apparently, beset by the challenge of surviving in the fierce contest for customers. This is a fact of life for SVoD business operators and for business owners, in general.
Hence, they certainly need to find a way to “swim” and not “sink” in order to survive in the competition.