Skip to main content

2020: Imagine the Video Entertainment Landscape

If you could imagine the video entertainment landscape in ten years, what would be significantly different from today's environment? The Diffusion Group (TDG) predicts that by 2020 the consumption of Internet video -- content stored and distributed over an IP architecture -- will overtake the consumption of broadcast TV programming.

According to TDG market study data, while the amount of time consumers viewed TV has remained relatively stable, the amount of time consumers watched online video increased 84 percent between 2008 and 2009.

That means, when extrapolated across the entire TV-viewing population, the average time spent viewing online video in 2009 was 52 percent more than in 2008.

TDG expects that this rate of growth will actually increase during the next 5-7 years due primarily to the increased use of the television as the "platform of choice" for over-the-top (OTT) video viewing.

According to Colin Dixon, senior partner at TDG, "The total amount of time spent watching video from all sources, including pay-TV and Internet video, will hold constant during the next 10 years at around 32 hours a week. With online video usage accelerating we expect the amount of Internet video watched to eclipse the amount of live broadcast TV around 2020."

Though this forecast may be inconceivable to those who view the future through the lens of today's predominant business models, Dixon says there is good reason to believe that this estimate is realistic.

Keep in mind that during this period, Internet and broadcast delivery of video content will become blended in such a way that consumers will be unaware of (or won't care) which conduit serves which content. Because so much of their audience will be consuming online, it is more important than ever that cable and broadcast channels increase their presence online.

TDG's new report, "The Economics of Over-the-Top TV Delivery," discusses trends in online and traditional TV viewing; examines the online and TV ad models; and offers two case studies to illustrate how cable networks can use an over-the-top mix of linear standard-definition and high-definition channels with advertising, and a blend of PPV and subscription service to effectively transition their business to an online model.

If you were to imagine some of the dominant video entertainment distributors in your market by 2020, who might they be? In the U.S. market it's easy to predict who it won't be, the traditional video retailers -- Hollywood Video and Blockbuster. Also, the cable and broadcast channels that survive the transition will likely have significantly different operating structures, as a result of the continued decline of their legacy advertising revenues.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of