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The Case for News in Video D2C Services

Report by Tim Mulligan
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The 20,000 Foot View:  Digital disruption of the traditional pay-TV landscape was led by subscription video on demand (SVOD) services using scripted drama to gain consumer adoption, one of pay-TV’s very own four pillars. With SVOD originals strategy now diversifying into factual and reality, the two remaining pay-TV pillars sports and news are all that is stopping SVOD being a full like-for-like replacement for traditional pay-TV. With sports ROI hindered by excessive valuations, news is optimally placed to join scripted drama, factual, and reality at the core of direct-to-consumer            services, catalysed by            live coverage and the growing tribalism of politics.

Key Insights

  • News is            reborn with            of consumers spending            per week consuming news (more            any other media genre)
  • News, however,            a utility rather than fan-focused,            the favourite TV genre for                       of consumers, making it just            sixth most popular genre
  • Yet news            also set to grow, with            consumers intending to increase their            consumption 
  •            and politics catalysed news consumption, with channels on YouTube seeing a            increase in subscribers (nearly twice as quickly as the YouTube average) and a            increase in views from April to October 2020
  • Apple may            particularly well placed in the            of news, with Apple TV+            active users over-indexing for news           
  • News audiences            older with            of news genre            aged           
  • High news            are on higher income, over-indexing            the            household income bracket
  • Digital paid            subscribers over-index for connected device            consumption and under-index for TV-based            consumption
  • Paid news            are digital sophisticates, with only            watching live TV weekly compared            the consumer average of            and            over-index for paid video subscriptions 

Companies and brands mentioned in this report: Amazon, Amazon Prime Video, Apple, Apple TV+, Comcast, Facebook, Google, Peacock, YouTube

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