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The description of this entire ecosystem of video streaming would, indeed, not be complete without mentioning the providers of on-demand internet streaming media also called streaming video on-demand services ("SVoD services"). From 2011, the press began blogging about the most popular streaming media services that would bring high-quality commercial content streamed to the TV sets, smartphones and computers of the masses [3]. Netflix, Amazon Video on Demand (now rebranded Amazon Instant Video and Amazon Prime), Hulu Plus and Vudu came out on top ("SVoD providers"). Replicating the successful business model of music streaming in the video streaming sphere: it's all about scale, baby SVoD providers have it so good: not only can they benefit from the great strides made by streaming media technology since the mid-noughties, but they can also educate themselves faster thanks to, and avoid the pitfalls which threatened, their prerequors, ie streaming music on demand providers such as Spotify, Deezer, Pandora, Rdio, Grooveshark and Beats (the "SMoD providers"). While SMoD providers typically charge USD4.99 per month for an access plan to their services, and up to USDD9.99 per month for a premium plan, SVoD providers start their monthly subscription plans at USD7.99 with a maximum price of USD11.99 per month for SVoD services on up to 4 screens per household.
Fearless Netflix even got a lot of flak, in April 2014, for hiking up its subscriber fees globally by USD1 to USD2 a month [4]. If we quickly do the maths, we can forecast that there is more money to be made in SVoD services, than in SMoD services, provided that these services are scaled up. And scaled up they are: on 23 April 2014, Amazon announced a licensing agreement that gives Amazon Prime members exclusive access to highly-thought after HBO's library of original content, though unduly increasing the appeal of becoming an Amazon Prime's subscriber. On 24 April 2014, competitor Netflix announced that it had contracted with three small cable companies to provide subscribers access to its content via TiVo DVRs, while on 28 April 2014 it announced a deal with Verizon to provide Netflix subscribers high-speed online access to streaming content, the second such deal Netflix has made with an Internet service provider ("ISP"). As the technology industry – and to a degree the entertainment sector – function very much on a "winner take all" economic model, streaming content is an emerging battlefield teeming with opportunities and risks, in which companies assert their dominance and grow their market share. There are some clear winners, in the SVoD services' sector, such as Netflix which, in the first quarter of 2014, added 2.25 million streaming subscribers in the US and a total of 4 million worldwide. It now has 35.7 million US subscribers and more than 48 million globally, in line with its long-term goal of 60 to 90 million domestic subscribers. It all makes sense from the consumer's pointpoint too: streaming is converting the most valuable downloaders (of music and video content) into subscribers and in doing so so reducing their monthly spending from USD20 or USD30 to USD9.99 on average.
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By the end of 2014, music streaming revenues accounted for USD 3.3 billion, up 37% from 2013. In comparison, online and TV-based video streaming services combined to pull in a revenue of USD 7.34 billion in 2013, a figure that PriceWaterhouseCoopers ( "PwC") says will rise to USD 11.47 billion in 2016, before reaching USD 17.03 billion in 2018. That rise will be driven primarily by subscription video services such as Netflix and Hulu, PwC says, rather than by through-TV subscriptions.
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