Futuresource: Apple to kickstart 2019's next wave of SVOD evolution
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Editor
| 23 March 2019

A research post from Futuresource Consulting is predicting that in the run up to Apple’s 25 March event, its anticipated SVOD service will play a huge role in defining the subscription video-on-demand industry, particularly in the US.

The new service, combined with the Disney+ service, expected later in the year, will create something of a renaissance said Futuresource. It noted that with more than 20 million Apple TV owners worldwide, who have demonstrated an insatiable appetite for content and a high capacity for entertainment spend, there would be a ready-made loyal audience just waiting to switch on.

Futuresource added that in assessing the fortunes of the service, it was necessary to factor in Apple’s partnership with Samsung in early 2019 that placed an exclusive iTunes content app on the South Korean manufacturer’s TVs.

Yet it cautions that Apple’s plans will be nothing without the necessary content markers and that even with its fan base, a strong and wide content offering will be needed from day one. It said that comparisons with Netflix’s content will be inevitable, and that Apple will require a powerful portfolio to attract and retain subscribers.

While Futuresource advised that Apple would need to plan continued forays into exclusive or original content, it predicted that given Apple’s likely key subscriber demographic, such customers would likely be taking Apple as an additional service, rather than cannibalising their existing video subscriptions. In addition, it did not expect the service to impact growth of the leading SVOD players such as Netflix and Amazon Prime Video.

Ultimately, Futuresource believes that there would be an opportunity for Apple to become a content super aggregator, similar to how Amazon was carving out the landscape with Amazon Channels.