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.

For more:
- read this RapidTVNews story

- Related links:
Gartner, CCS Insight: Smartphone growth in 2014 will be fueled by low-cost models
Gartner: Worldwide semiconductor sales on pace to total $338B in 2014
Gartner: IoT at least 5 years away from benefitting businesses

Sponsored by Dell Technologies

Whitepaper: How to Elevate Your Content Delivery Workflows With Dell EMC PowerScale

Learn how Dell EMC PowerScale helps meet surging viewer demand while reducing costs with a single centralized platform for the ingest, processing, and delivery of the content your viewers love.

Suggested Articles

WarnerMedia scored a key HBO Max distribution deal with Comcast just as it launched in May. Nearly six months later, there still isn’t an app.

Comcast is planning new data caps and video service price increases for its subscribers in 2021.

The Apple TV remote is an often reviled peripheral device. Universal Electronics has taken it upon itself to create a different option.