Streaming content providers up their game as cord-cutting accelerates

Untapped markets, original programming and new revenue models offer opportunities for the established players.

Vikram Barhat 19 September, 2018 | 5:00PM

The trickle of pay-TV viewers migrating to subscription-based video services that started a few years ago has now turned into a full-blown tsunami of cord-cutting. According to a new forecast from research firm eMarketer, the number of TV viewers ditching cable TV for streaming services such as Netflix and Amazon Prime is set to reach 33 million this year and is projected to hit 55 million by 2022. As a result, the global over-the-top (OTT) revenue is set to skyrocket from US$20.1 billion in 2017 to more than US$30 billion by 2022, predicts a PricewwaterhouseCoopers study.

A combination of changing consumer tastes, consumption patterns and cutting-edge technologies are disrupting the traditional media landscape as digital TV offerings supplant cable TV content.

The first movers in the streaming space are scrambling to maintain their leadership position by pumping millions into developing and acquiring original content, bulking up their catalogues and exploiting artificial intelligence to personalize content for viewers. But as the pie grows, so does inevitably the interest of other tech heavy hitters that are shifting gears to catch up.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc Class C1,541.74 USD2.04
Amazon.com Inc3,200.00 USD0.55
Apple Inc383.68 USD0.25
Netflix Inc548.73 USD8.07

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.

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