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Futuresource: Apple service to play ‘key role in evolution of SVOD’

Apple’s much anticipated streaming service, details of which are expected later today, will play “a key role in the evolution of SVOD in 2019,” particularly in the US, according to Futuresource Consulting.

The research firm said that Apple’s offering, combined with the forthcoming Disney+ service, will create “something of a renaissance” in the market. However, it predicted that Apple’s service won’t impact the growth of Netflix and Amazon Prime Video.

“Futuresource research shows there’s a continuing customer acceptance of multiple subscriptions. In the US, there are nearly 80 million households with SVOD services, and on average each of these households takes two services,” said the company in a research note.

Futuresource suggested that there will be a trend towards consumers taking three SVOD services in the coming years, though said this figure will be “marginally lower” in Europe.

It also predicted users will take out trial memberships and special offers, “dipping in for short periods and then cancelling subscriptions,” as choice in the market continues to grow.

Apple is widely expected to launch its TV and video service later today at an ‘Apple special event’ at the Steve Jobs Theatre in Cupertino, which carries the tag-line “it’s showtime”.

Reports have suggested that Apple’s streaming service is likely combine Apple original content with subscriptions from partners like Starz, CBS, Lionsgate and HBO. Futuresource said: “There’s an opportunity here for Apple to become a content super aggregator, similar to how Amazon is carving out the landscape with Amazon Channels.”

Apple hired Sony Pictures Television’s co-presidents Jamie Erlicht and Zack Van Amburg to lead its move into original programming in 2017 and has since appointed TV talent like former Channel 4 content chief Jay Hunt.