Want to know why CBS is putting its new “Star Trek” series on streaming? Check out the growing demand for Internet-delivered services vs. traditional cable offerings.

Cord cutters, cord shavers, and those wanting “skinny content” packages will drive streaming video service revenues to nearly $35 billion within five years – more than double 2016 totals – according to a new report from Juniper Research.

SVOD (subscription video on demand) services include world leader Netflix, Amazon, Hulu and more with additional services expected to deliver as consumers look to cut the cable cord, look for smaller packages (cord shavers) or sign on for “skinny” packages.

Netflix already has subscribers on the scale of DirecTV (47 million) and Comcast (47.7 million), Juniper notes.

“SVOD providers can expect to see substantial returns on their expansion and growth strategies, as more countries and markets move to this method of video consumption, in a continual move away from linear, scheduled TV,” Juniper says.

Yet Netflix also faces challenges as it tries to expand overseas.

“Whilst Netflix has expanded its coverage globally, the test will be whether it can meet its original content production costs, as well as provide quality content to consumers,” says Juniper Research report author Lauren Foye. “It is believed that US rival Hulu is now close to offering the same amount of content as Netflix, and others are pushing new models- such as Amazon’s monthly subscriptions to Prime video, and YouTube Red subscriptions for exclusive content.”

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Streaming Definitions

Source: Juniper

VOD (Video on Demand) In the research, Juniper has provided analysis of 3 key forms of VOD; these include SVOD (Subscription Video on Demand), TVOD (Timed Video on Demand) and FVOD (Free Video on Demand). We also include DTO (Download to Own), where customers can purchase a digital copy of content to keep and watch when they want.

  • SVOD (Subscription Video on Demand) Popular OTT services, such as Netflix and Amazon Prime, utilize SVOD, which charges either a monthly or annual subscription fee to consumers, then provides them with access to content.
  • TVOD (Transactional Video on Demand) This is seen as a more modern incarnation of video or DVD rental, TVOD allows users to stream a movie or TV show for a limited period (often 24-48 hours) at a price point lower than that set for DTO or subscription costs.
  • cFVOD (Free Video on Demand) Free video services are most closely associated with the streaming giant YouTube. These services allow the vast wealth of their content to be accessed free, with the host site monetizing through advertising.