From the perspective of overall market growth, the pay TV sector hardly seems like the most attractive investment, with many researchers foreseeing slim growth in users or revenues this decade.
Ad blocking in the U.S. market will cause problems for online advertisers, as the phenomenon is expected to grow by double digits this year and next. In 2016, 69.8 million Americans will use an ad blocker — that’s a jump of 34.4% over last year. It will grow another 24% to 86.6 million people next year.
Smartphone and PC viewers prefer short-form content the most, at 66 and 55 percent, respectively. Tablets viewers spend little time with mid-form video, instead viewing is evenly split between long-form (43 percent) and short-form content (44 percent). Connected TV viewers watch long-form content 92 percent of the time with AVOD services.
According to PwC, first quarter (Q1) 2016 deal value, totaling $10.4 billion, declined to its lowest point since before 2014. However, deal volume (183) improved six percent over Q4 2015 (172). In Q1, film and content deals provided the lion’s share of merger and acquisition (M&A) value, whereas advertising and marketing sustained overall volume.
The lines between desktop, mobile, TV and film are beginning to blur as the various platforms are often more distinguished by differences in use case than by the underlying technology.
According to PwC’s U.S. Entertainment, Media & Communications (EMC) Year-End Deal Insights, 2015 deal value totaled $149 billion – that’s a 13 percent increase over 2014. However, deal volume declined seven percent from 886 announced deals in 2014 to 818 in 2015. Overall, cable deals provided the lion’s share of 2015 deal value, whereas advertising and marketing spurred deal volume.
As in the US, where live TV viewing sank 8% in the 25-34 year olds last year, younger people in the UK are also shifting their viewing online. The 25-34 year old UK viewers watched 7% less television last year. UK youth has also adopted the smartphone as their device choice.