Subscription Entertainment Plans to Double by 2020, Says Deloitte
The demand for subscription entertainment services will rise sharply over the next few years, predicts professional services firm Deloitte. In the U.K., 26 million people currently subscribe to a streaming service. By the end of 2018, half of all adults in developed countries will subscribe to 2 or more services. That average will double to 4 services by 2020.
The rise shows a consumer willingness to spend on content, rather than watching or listening to ads on free entertainment services, says Deloitte partner and head of media and entertainment Dan Ison. Video, music, news, and gaming services will count 350 million online-only subscribers in 2018.
“The growing capability of online delivery—from robust hosting to faster broadband speeds—are making digital media ever more compelling than traditional alternatives. For music, the first wave of digital transformation was about making CD collections portable: With today’s technology, music fans can enjoy a pocket-sized jukebox of tens of millions of tracks wherever they have connectivity," Ison says.
Deloitte also sees younger viewers moving away from traditional television viewing, with 18- to 24-year-olds showing a 10 to 15 percent decline by 2018. However, the rate may lessen after that since the use of smartphones, social media platforms, and pirate sites has reached its peak.
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