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Rethink TV: SVOD to impact cinema revenues

Global box office revenues will fall by US$7 billion over the next five years thanks to the rise of subscription video on demand, according to Rethink TV.

The video research arm of Rethink Technology Research estimated that for every US$15 billion spent on pure SVOD and AVOD content, there will be a corresponding fall of one billion cinema visits.

The research predicts a future where “failure to jump on the SVOD market will create the conditions for some major established studios to stumble financially”.

“We know that releasing multiple tens of billions of dollars into original content which only comes to market via SVOD, must disrupt the existing cinema supply chain, but by when?

“So far studios are forced to chase both forms of revenue – cinema-based and SVOD-based – and appear to believe that both revenue streams are unrelated and will not affect one another. At least not yet,” according to the report.