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Fearless Netflix even got a lot of flak, in April 2014, for hiking up its subscriber fees globally by USD1 to USD2 a month [4]. If we quickly do the maths, we can forecast that there is more money to be made in SVoD services, than in SMoD services, provided that these services are scaled up. And scaled up they are: on 23 April 2014, Amazon announced a licensing agreement that gives Amazon Prime members exclusive access to highly-thought after HBO's library of original content, though unduly increasing the appeal of becoming an Amazon Prime's subscriber. On 24 April 2014, competitor Netflix announced that it had contracted with three small cable companies to provide subscribers access to its content via TiVo DVRs, while on 28 April 2014 it announced a deal with Verizon to provide Netflix subscribers high-speed online access to streaming content, the second such deal Netflix has made with an Internet service provider ("ISP"). As the technology industry – and to a degree the entertainment sector – function very much on a "winner take all" economic model, streaming content is an emerging battlefield teeming with opportunities and risks, in which companies assert their dominance and grow their market share. There are some clear winners, in the SVoD services' sector, such as Netflix which, in the first quarter of 2014, added 2.25 million streaming subscribers in the US and a total of 4 million worldwide. It now has 35.7 million US subscribers and more than 48 million globally, in line with its long-term goal of 60 to 90 million domestic subscribers.

It all makes sense from the consumer's pointpoint too: streaming is converting the most valuable downloaders (of music and video content) into subscribers and in doing so so reducing their monthly spending from USD20 or USD30 to USD9.99 on average. By the end of 2014, music streaming revenues accounted for USD 3.3 billion, up 37% from 2013. In comparison, online and TV-based video streaming services combined to pull in a revenue of USD 7.34 billion in 2013, a figure that PriceWaterhouseCoopers ( "PwC") says will rise to USD 11.47 billion in 2016, before reaching USD 17.03 billion in 2018.

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That rise will be driven primarily by subscription video services such as Netflix and Hulu, PwC says, rather than by through-TV subscriptions. The leap into content creation and production What is interesting is that SVoD providers are going beyond what SMoD providers have ever done: they are entering the content production sphere, in order to enrich their catalogs and offers; to expand their networks of, and reach to, high-powered executives, producers and movie-stars as well as to assert their ly-acquired status and clout. Online streaming video services such as Netflix and Hulu will make more money per year than the US movie box office by 2017, according to a report release by PwC. The report projects that streaming services will be the largest contributor to the American filmed entertainment industry in four years, as the revenue generated by TV and subscription video on-demand providers reaches almost $ 14 billion, $ 1.6 billion more than the amount earned from the traditional cinema box office. Therefore, SVoD providers have, and will keep on having, a lot of disposable cash to invest.

How to better invest this available income than producing high-quality video content, to enrich one's catalog and products offering? The main area streaming services will have an impact on the traditional box office, the PwC report says, is in release dates. At the moment, most movies are given months in theaters before they slowly make their way to streaming services.

PwC says the strength of companies such as Netflix is expected to put pressure on the industry to make this transition faster, offering filmed entertainment to consumers earlier. More importantly, SVoD providers keep on expanding their content inventories.