23 Mar 2020
Posted in Technology
COVID-19 will cause surge in viewing hours, particularly on AVOD and SVOD platforms, says GlobalData
The coronavirus (COVID-19) is by far the most significant theme to affect the technology industry in 2020, and traditional TV will be disrupted heavily – with casualties including audience-based talk shows and live sport. Subscription video on demand (SVOD) streamers such as Netflix will not see huge profit surges because existing users pay a flat fee, and increased viewing hours will do nothing more than strain their servers, says GlobalData, a leading data and analytics company.
GlobalData published a fully revised report, ‘Tech, Media & Telecom Trends 2020’, to reflect the impact of COVID-19 on 17 separate TMT sectors and the leading companies within.
Danyaal Rashid, Thematic Analyst at GlobalData, says: “New services such as Disney+ will scale up their subscriber numbers significantly. COVID-19 may represent a watershed moment where free-to-access, ad-based video on demand (AVOD) services come to the fore. AVOD platforms make revenue based on the number of ads consumed, so increased viewing hours equals increased sales.”