Fast-growing SVOD won't displace pay-TV but will cut into premium services, Gartner predicts

Pay-TV remains the biggest segment on the overall consumer video services market, but it's masking an incendiary spending rise for SVOD services like Netflix (NASDAQ: NFLX) and Amazon (NASDAQ: AMZN) Prime Instant Video.

In a research note obtained by RapidTVNews, Fernando Elizalde, principal research analyst for Gartner, predicted consumer spending on SVOD services will rise 28.1 percent in 2014 and 18.2 percent in 2015.

The analyst does not believe SVOD services will displace pay-TV services, but rather serve as complimentary to them. However, he does assert that increased spending on SVOD services will come at the expense of premium pay-TV video services.

Elizalde added that over-the-top services have the strongest growth potential. "In the emerging regions, where this type of services is more novel, we estimate SVOD spending will grow 53% in 2014," he noted.

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