A few arrived early: Netflix, Amazon, and Hulu first launched VOD services over a decade ago. Today, the services would appear primitive. Netflix’s online library was little more than an afterthought compared to their hulking DVD rental business that was finally threatening the behemoth Blockbuster. Amazon’s foray into VOD was just another tentacle emerging from the Bezos hivemind. And, well, who had ever heard of Hulu?
These players built up their armories slowly, growing their libraries, building partnerships, and beginning to explore original content. It was all happening at the right moment. Internet access proliferated and computers embedded themselves in our homes, phones, wallets, and watches. DVDs sales dwindled. Cable viewership started to stumble. Customers wanted choice and control. SVOD services gave them exactly that.
It took some longer than others to pick up their bayonets and join the fight. HBO leapt into the game in 2010. CBS and Showtime followed suit a few years after. Niche services, from AcornTV to Shudder, tried to carve out a piece of the expanding pie. All the while, the opportunities grew. AT&T and YouTube rushed to build vMVPD offerings and transfer the economics of cable to the digital space.
Mergers not seen since the Golden Age of film studios came to define a modern entertainment era. With heavy pockets and a new mantra – ‘Content is King’ - the stage was set: the war was now beginning.
November 2019 saw two giants enter the area: Disney+ and Apple TV+. Disney burst onto the scene with comprehensive offerings and established brands. Their numbers ballooned and, within months, they were positioned as one of the major players. Apple TV+, in no rush and with no limits on expenditures, has taken a more methodical approach. With subscriber numbers hardly north of 10M, despite plenty of freebie programs, they’re lagging behind the competition.
As the landscape grows more crowded, the competition only becomes more intense. Quibi attempted to establish themselves by differentiating on style. The on-the-go model might have been more successful… if everyone hadn’t been stuck at home during COVID-19. HBO Max, long touted for its huge Warner Bros library, emerges to strong initial reviews. NBC’s Peacock will soon join the fight with a variety of tiered offerings for customers growing weary of paying for another service.
The war is far from over. It’s only getting started. More fighters will join. Some will exit early. Others will find value in the supply chain. If nothing else, it’ll mean plenty of new TV for us to watch.