Streaming platforms adapt to demand
Expanding to international markets
Four major US streaming services (Disney, Netflix, Paramount Global and Warner Bros) recently reported their quarterly earnings, all of which highlighted the expansion of the streaming market to new international territories. ZOO has positioned itself to benefit from this trend by investing ahead of the curve and scaling our operations in key growth markets.
Disney’s most recent quarterly results revealed a total of 221m gross subscribers, surpassing rival Netflix as the most popular streaming service provider. In May, Paramount Global announced plans to advance spending on streaming content and raised the global subscriber target for its new streaming service, Paramount+. In addition to new territory launches in the UK, Ireland and South Korea, Paramount has partnered with Comcast to launch a new service, SkyShowtime, targeting the European markets. Netflix is also maintaining content spend moving forward. The latest drop in subscibers was more modest than expected by the market and was mitigated by gaining 1.08m in Asia-Pacific. Furthermore, HBO Max is planning to launch in LATAM in the next year and Asia-Pacific in 2024.
As one of the few end-to-end providers working with leading media companies and services globally, the unprecedented demand for localised content provides a positive market backdrop for ZOO.
Introducing ad-supported revenue models
Increased competition among streaming services has driven market leaders to adopt more flexible revenue models and provide tiered options to consumers. Ad-based video on demand (AVOD) models gain revenue from advertisements determined by number of views as opposed to a recurring subscription fee. Netflix recently announced it would parter with Microsoft to introduce an additional ad-funded tier. The move has also been followed by Disney, launching its ad-supported subscription available from December 8.
The moves are designed to offer greater consumer choice at the desired price points, increasing flexibility for audiences and increasing access to their content.
