US Subscription Video Landscape 2019

US Subscription Video Landscape 2019

Bracing for an Onslaught of New Services

Executive Summary

There’s never been a shortage of action in the video streaming space, but things will get very interesting as media and tech giants tee up direct-to-consumer (D2C) services that will launch in late 2019 and early 2020.

What is the state of the US subscription video landscape?

Virtually every platform we track has gained subscribers and revenues over the past year. This includes standalone subscription video-on-demand (SVOD) services like Netflix, Amazon Prime Video and Hulu; network-driven services like HBO Now and ESPN+; and linear over-the-top (OTT) services such as Sling TV, Hulu with Live TV and YouTube TV.

Which companies are preparing to launch SVOD services?

Major players—Apple, The Walt Disney Co., AT&T’s WarnerMedia and NBCUniversal—have the power to significantly disrupt the status quo, not only because they have the money, expertise and content libraries to make a huge impact, but also because they will increasingly hoard their own content instead of licensing it to the likes of Netflix, Amazon and Hulu.

What does the success of subscription-based platforms say about advertising monetization?

Both pillars of monetization—subscriptions and advertising—are healthy and growing, leading industry experts to conclude that one may not prevail over the other. Several incumbents—Netflix, Prime Video, HBO Now and Showtime Anytime—are exclusively subscription funded, and upcoming services from Disney and Apple will follow the same model. But hybrid-based monetization is also alive and well on Hulu, CBS All Access, YouTube and all of the linear OTT services, which mirror the ad loads of the TV channels they carry while also collecting subscription fees.

What’s the latest in cord-cutting?

We see the cord-cutting trend continuing as more people choose digital on-demand and live TV services. Linear OTT services are driving this change, luring customers away from pricey cable and satellite plans. However, linear OTT services are struggling to achieve profitability. Most have increased prices in recent months, leading consumers to question how much money they really save.

WHAT’S IN THIS REPORT? This report analyzes data, trends and monetization in the US subscription video space.

KEY STAT: The top US SVOD services generated more than $19 billion in subscription revenues in 2018. This total exceeds the 2017 figure by more than $4 billion.

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authors

Paul Verna

Contributors

Blake Droesch
Junior Analyst
Jasmine Enberg
Senior Analyst
Lauren Fisher
Principal Analyst
Sharon Tan
Researcher

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