Perhaps the bigger surprise is that more haven’t exited the market — yet. “We’re finding that there are many services that are … getting enough subscribers just to be able to be sustainable,” Brett Sappington, senior director of research at Parks Associates, said.
That’s been enough to keep the doors open, but many outlets — particularly smaller, niche offerings — are seeing their subscriber levels plateau.
“They don’t have the marketing knowledge or complexity and the capital to be able to effectively market their service,” Sappington said. “They get kind of stuck, or find themselves growing slowly over time.”
Many industry observers, including those who play in the SVOD arena, say a bigger shakeout is inevitable or already underway.
From the article "SVOD MARKET: Survival of the Fittest" by Jeff Baumgartner.
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