After a number of years of uninterrupted progress, the subscription video-on-demand market is currently seeing the first signs of slowing down. The first quarter of 2022 was marked by Netflix results falling short of expectations, and, especially, by an increasing fragmentation of the market. Advertising thus stands out as the only hope of salvation for revitalizing the market.
This tenth edition of our Digital Market News Bulletin, reserved for Unifrance members (downloadable below, in French only), takes a look at events in the global digital distribution market in the months of April and May, 2022.
Could the latest financial results posted by Netflix be symptomatic of a new dynamic emerging in the VOD sector? Until now dominating the market, this subscription model appears to be running out of steam: the proliferation of online platforms and the fragmentation of the supply of content over recent months have contributed to this trend, while the desire to make users pay has been questioned in the currently uncertain economic context. Platforms are thus seeking to consolidate their offer to consumers, notably by developing original content, but also by diversifying their revenue sources and their range of activities in order to reassure the markets.
While AVOD platforms are enjoying exponential growth, their SVOD counterparts are considering ways in which to change their models by incorporating advertising. For these platforms, it is doubly motivating: it would mean breaking with their dependence on subscription fees at a time when the attrition rate is increasing as well as lowering fees offered to users. Disney+ and Netflix have notably announced a hybridization of their models in 2022.
This redefinition of models is leading to a new era in video-on-demand in which the until now clearly defined borders between free and pay services, between per-view fees and subscription, are becoming more fluid.
Unifrance's daily digital market update is available on our dedicated Twitter account: @UnifranceNum
Données VOD
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