The past years have testified to the vitality of the video-on-demand sector. After a period of growth and market fragmentation, the industry has entered into a second phase in recent months: that of the concentration and redefinition of dominant models.
The 9th edition of our Digital Market News Bulletin, reserved for Unifrance members (and only available in French), takes a look at events in the global digital distribution market in the months of February and March 2022.
While the future of the market appears to be coalescing around a number of major players (chiefly across the Atlantic), a trend of mergers/acquisitions has begun. Groups in the US are competing for acquisitions with the aim of bolstering their OTT services and catalogs. Despite the seeming multiplication of global streaming services and their expansion around the world, there is, in reality, a small number of conglomerates that are currently positioning themselves in the global market. This redefining of the sector's ground rules, showing a transition from market fragmentation toward concentration, will result in a major shake-up of the sector. This dynamic will impact on both the acquisition strategies and the economic models of online platforms.
Under pressure from markets, platforms are seeking to prove their ability to remain profitable. As the growing supply of SVOD platforms divides demand, the challenge at this time is one of maintaining subscribers. The development of free platforms is encouraging SVOD services, which until now had dominated the scene, to reevaluate their economic models by turning toward advertisers.
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