Streaming Services Boost Digital Content Spending
Consumer digital content spending is set to jump next year amid the continued migration to streaming services, a new study from Juniper Research has found.
Juniper found that spend will reach US$180 billion next year, up nearly 30 per cent on last year’s figure of just under US$140 billion, with broadcasters and telco operators increasingly deploying their own on-demand and IPTV offerings in competing with OTT (over-the-top) players.
In competing with award-winning shows developed by Netflix and Amazon, telcos also had “recognised the pressing need to invest in attractive, original content”, the research found.
Several telcos have partnered with leading OTTs in offering consumers bundled “zero-rated” content not impacting monthly data allowances, Juniper noted.
The research also argued that more operators might canvas “enhancing the relationship” by acquiring a strategic stake in the content provider.
Meanwhile, the research also highlights Twitter’s recent acquisition of the online rights for NFL as the first move into the sporting arena by an OTT player.
While the research argues that other players could follow suit, costs may act as a deterrent.
Research author Dr Windsor Holden noted the spiralling cost of most premium sporting rights means bidders for exclusive live rights “must now pay several hundred million dollars per season”.
“With most streamed audiences well under a million, this is likely to deter online-only players in the short and medium-term,” Holden commented.