Subscriptions
Pundits were once cautious about the
introduction of digital content, stating that it
had to be free because no one would ever pay
for it otherwise. However, when we look at the
Streaming Video Subscription (SVS) revenue
from services like Netflix and Hulu, we see a
totally different outcome.
Whereas SVS revenue reached the 4 billion
USD mark in 2014, this number currently lies at
6 Billion and is estimated to skyrocket to 11.5
Billion in 2019. The same trend can be spotted
in Music Streaming subscriptions, where
between 2014 and 2016 the amount of revenue
has been nearly doubled to a current 14 Billion
Dollar Revenue with an estimated 20.6 Billion
dollar prospect for 2019.
The new pundit story is that there’s one right
model — subs or ads. The truth is that both work.
Moreover, media companies do not settle for
options, but instead see combinations; through
which they have dual revenue streams. A win-
win situation.
The Next Big Thing
There are signs that the pace of innovation
in smartphones is slowing. The introductions
of new Apple iPhones no longer capture
the imagination the way they once did; the
advances are more incremental. So technology
companies are looking for the
next big thing. Many candidates
have been suggested — glasses,
watches, cars, virtual reality.
However the “next big thing”
is already upon us. Namely,
messaging apps. Messaging
currently is at the heart of the
mobile experience, surpassing
social network apps with over 500
million users. Snapchat has over 300
million monthly users,
Instagram 600 million and Facebook
Messenger a whopping one billion monthly
users. The
messaging apps are becoming so
advanced that you are able to consume
every type of media on them.
Moreover, it is possible to secure payments,
handle e-commerce and even
Language and the Global Media Market
For media owners, the opportunities will be
enhanced by advances in areas like translation.
Forget about the clunky online translations that
are currently available, analysts say; within a
few years, the Internet will offer simultaneous
interpretation of audio and video, making
all sorts of media content accessible to new
audiences. English-language media, which
have had a head start on globalization, could
gain new markets. And for the first time, many
non-English publishers, which have struggled
to reach beyond national or linguistic borders,
could find global audiences.
Clearly, the media revolution could veer off in
different directions. Despite digital convergence,
it will be marked by diversity. “You could argue
that the future is already here, that the factors
that will determine the future are already here,”
said Mr. Fenez, at PWC. “We just haven’t seen
the full impact. All we can really talk about is
the pace and the
color of the future in
different markets.”
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