Analyst: SVoD world faces splitting into two tiers

According to Moody’s analyst Neil Begley, smaller SVoD players need to partner up or be acquired in order to compete with the big players

Smaller SVoD players need to partner up or be acquired in order to compete with the big players according to Moody’s analyst Neil Begley.

Speaking at the Goldman Sachs media conference, Begley said the SVoD world is splitting into two tiers, with smaller players needing to “partner up in some fashion or be acquired … to achieve the girth necessary.”

If not, “they’ll be relegated, and that might be fine, to being a Tier 2 provider. But churn will be high and it will be hard to get the attention of folks as an SVoD platform on a standalone basis without having consistently superior content that attracts people in their own right,” added Begley.

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