IBC365 looks at the latest facts and figures featured in analyst reports from across the industry.
Report confirms 2020 as the year of streaming
Findings from the report 2020: The Year of Streaming, released by Apptopia and Braze, has revealed 2020 is still headed for a breakout year in streaming.
The report, analysing the state of the streaming industry, demonstrates the mobile app trends driving consumer behaviour, citing 3 key findings including the statement that there is enough room for new and existing services.
- Read more: 2020: The year of the OTT
Quibi faces challenges during Covid-19
Quibi has been pointed out as one of the casualties of the impact of coronavirus in a report from GlobalData, calling its launch “disappointing.”
According to Danyaal Rashid, Thematic Analyst at GlobalData, “Quibi appeared to be off to a flying start with 1.7 million downloads in its first week, but today it sits well outside of the top 40 free iPhone apps on the US app store,” he notes. “This is particularly disappointing considering the amount of spare time users under lockdown have to use entertainment apps.”
He further commented, “Quibi has marketed itself as a companion for the ‘ten-minute gaps’ that people have throughout a normal day – perhaps on a commute or waiting in line for lunch,” he says. “However, amid a pandemic and global lockdowns, things are far from ‘normal’ and people are just not experiencing these ‘moments’”.
Coronavirus not slowing 5G deployments
According to GlobalData, despite Covid-19 resulting in revenue pressures from slowing sales and consumer demand for new products, many major telecoms carriers say they still have the cash flow to move ahead with 5G deployments.
In both the US and Europe, there are reports of local government approvals for 5G installations slowing down amid work from home orders and government attention being focused elsewhere.
GlobalData notes that in Europe, several countries have delayed spectrum auctions and it expects more delays the longer countries stay in lockdown. Europe may now see a delay in getting this additional spectrum.
Ad revenue for Linear TV and AVOD to slump
Falling ad revenues are taking their tolls on legacy broadcast networks as well as AVOD platforms, according to a recent GlobalData report.
Despite linear television ratings, streaming traffic being up and new sign-ups, the pandemic is having a devastating impact on the TV broadcasting industry as firms have been reluctant to spend on ads.
A GlobalData analyst commented, “Covid-19 has led to significant cuts in TV ad spending, affecting those broadcasters that rely on ad revenue to survive. Brands are reluctant to burn their limited cash reserves on ads, especially since this won’t stimulate demand in an economy shut down by non-market forces.”
- Read more: Will the 2020s be the AVOD decade?