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("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. That rise will be driven primarily by subscription video services such as Netflix and Hulu, PwC says, rather than by through-TV subscriptions.

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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. Netflix already has USD 7.1 billion in existing obligations for original and licensed content, and it recently contracted for an original Spanish-language series; a series from Mitch Hurwitz (the creator of much-loved Arrested Development); a third season of House of Cards and a final season of AMC's The Killing.

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Indeed, the economic returns of House of Cards, the test case, were as successful as the critical reviews. Netflix's strategy fortified its existing revenue model-acquiring and retaining subscribers-and even opened up revenue streams such as content licensing or even a branded channel with traditional distributors.

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