FEED Spring 2021 Newsletter

With a pool of potential consumers that seems smaller than ever, what can providers do to stand out? One option is

partnerships, which have seen a steady incline in the market since streaming took off. For the consumer, this means a greater

volume of content and more desirable content becoming available where it previously would not have been.

GROWTH IN OPERATOR-OTT PARTNERSHIPS

Despite a dip in 2020, perhaps due to lack of necessity, Omdia’s data shows an upwards curve that is likely to continue. This challenging future may also lead to greater ‘Disneyfication’ within the market. Vertical integration could see SVOD services buying up other brands that offer opportunities for new content. This is not new to the broader film industry and is a very successful strategy. Most major franchises (see below) make most of their revenue outside of consumable content.

205 200 150

200 300 400 500 600 700 800 900

100

50 0 2013 2014 2015 2016 2017 2018 2019 2020 0 100

Cumulative total live partnerships

Netflix Amazon HBO Disney DAZN Others

LIFETIME REVENUE OF STAR WARS FRANCHISE

$45 billion+ MERCHANDISE

$10 billion BOX OFFICE

$10 billion HOME ENTERTAINMENT

SPECIAL DELIVERY

While content is available in higher resolutions and bigger colour spaces, household display tech has some catching up to do. North America leads in UHD (4K) TVs, with close to 60% of

homes owning one at the end of 2020. Despite wide availability of 4K content – and 8K pioneering – Japan lags behind due, as Aguete points out, to a preference for smaller screens.

UHD SHARE OF REGIONAL HOUSEHOLDS

UHD VIDEO ON DEMAND TITLE AVAILABILITY

9%

90,000

80%

Japan North America

8%

80,000

74%

Western Europe Eastern Europe China Asia Pacific Latin America Middle East Africa

70%

70%

7%

70,000

65%

6%

60,000

60%

59%

56%

5%

50,000

52%

51%

50%

4%

40,000

45%

38% 44%

30,000

3%

40%

20,000

2%

34%

31%

30%

10,000

1%

24%

22%

0%

0

20%

15%

9% 12%

10%

4% 5%

Overall, only 3-5% of available titles are offered in 4K. Omdia’s data also highlights the relative scarcity of HD 1080p, with around 50% of all content only available in SD

0%

2015 2016 2017 2018 2019

2021 2020 2022 2023 2024

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