New Video Subscription Services to Add $3.6 Billion to US Direct-to-Consumer Market
According to IHS Markit, Disney, Apple, Warner Media and NBC Universal are driving direct-to-consumer video market profits.
Walt Disney Company, Apple and Warner Media are expected to launch their individual video services in 2019, followed by NBC Universal in 2020. These new services will increase paying subscriptions by $53 million by 2023, generating up to $3.6 billion in revenue. This kind of growth is dependent on all major services utilizing an aggressive strategy to make movies available earlier and increasing other low-cost add-on services.
IHS Markit expects Netflix and Amazon Prime to remain market leaders. Apple has the potential to catch up to Hulu by 2023.
Additional findings include:
- High-quality content will not be enough to guarantee success given the large number of competitors with their own content libraries.
- Disney’s acquisition of Fox could impact Hulu, showing the potential for Disney’s service to be among the top-tier services in the US.
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