Netflix’s gambit, aped by Amazon Studios and other imitators, is to replace the traditional TV model with one dictated by the behaviors and values of the Internet generation.
Instead of feeding a collective identity with broadly appealing content, the streamers imagine a culture united by shared tastes rather than arbitrary time slots.
via New Republic
Pay-TV customer needs and wants are purposely ignored — because the advertiser is the focal point of the legacy business model. In a report that attempts to quantify the costs of an à la carte pricing for cable television, Needham & Co.’s Laura Martin estimates that $45 billion of TV advertising would be at risk under such a change.
Along with 1.4 million American jobs, $20 billion in taxes paid by such cable operators as Comcast (CMCSA) and Time Warner Cable (TWC), and $117 billion in market capitalization.
The Western Europe Consumer Electronics (CE) market will end 2013 much the same way as it did last year — with -5% growth in retail value, due to lower prices and cannibalization of single-function devices by more mobile multi-functional devices.
According to Strategy Analytics, most major CE devices will experience negative growth in revenue aside from standout categories such as Smartphone, Tablet, Games Console, and Digital Media Adapter.
Only 6% of adult Internet users in the U.S. market view online video from a pay-TV operator’s website. The concept of “TV Everywhere” has been criticized for poor consumer awareness, being confusing, and lacking content, according to MRG.
Advertising alone will not convince consumers to adopt TV Everywhere offerings. Rather, these services should be integrated with the multi-functional pay-TV companion apps that many service providers are launching.
By 2018, 520 million homes in 40 countries will watch online television and video (both paid-for and ad-supported) — that’s up from 182 million in 2010. The media industry is in the midst of a paradigm shift, with web-delivered video as the agent of change in 2014.
Brands increasingly are getting onboard, with ad dollars expecting to show a CAGR of 13% over the next several years, reaching close to $5.8 billion by 2017.
Telcos and cable operators are investing heavily in their networks to upgrade their subscribers to bundles — known as triple-play or double-play service packages.
Total subscription revenues (pay-TV including on-demand, broadband and fixed-line telephony) will increase by 65% — from $124 billion in 2012 to $205 billion in 2018.
Research conducted by Frank N. Magid Associates for Crackle suggests tablets and smartphones are more likely to be used for out-of-home online video viewing in America.
One-quarter of U.S. internet users reported using their smartphones to watch streaming TV and movies while on the go, and nearly as many said the same about tablets. Both devices were less likely to be used for this purpose at home.
In theory, France has many of the necessary ingredients for a vibrant and growing over-the-top (OTT) video entertainment market — a high broadband penetration rate, and pay-TV operators that are active in multi-screen video.
The French OTT market has seen earlier and more significant developments from broadcasters and less from Pay-TV operators, compared to the U.S. and UK markets.
ITU research shows that the world has witnessed a massive shift from analogue to digital television; over 55 percent of households with a TV now receiving a digital signal — compared with just 30 percent in 2008.
Globally, the halfway mark for digital penetration was passed in 2012. In the developed world, an estimated 81 percent of total households receive a digital signal.