Report Summary

The Digital Transition

The Digital Transition of Pay TV & Consumer Behavior (2013)

Every year we will be doing a research report where we reach out to our community and members of other services to present a holistic view of the TV industry as it relates to streaming video. We also leverage data generated by well known research factions as well, making this almost like a "cliff notes" for digital consumption.

"Cable has been the glue for the TV eco-system for decades now but we believe there will be new over-the-top services in the near future that will deliver the equivalent [monetization opportunities]."

In this installment we talk about the growth we've been seeing around cord-cutting in recent years and how streaming video services relate to the trend. Cable has been the glue for the TV eco-system for decades now but we believe there will be new over-the-top services in the near future that will deliver the equivalent, if not better, monetization opportunities for their content publishers. As these service (i.e. Netflix, Amazon) scale to larger audiences, we will see more and more consumers opting in to alternative entertainment services. As seen in the chart below, current cable subscribers are familiar with alternatives, however they're not all comfortable cancelling cable. There is still an opportunity for cable to drive additional engagement and loyalty by delivering their on transactional VOD services as well as OTT streaming platform. However, to date, these types of services delivered by cable companies haven't been attractive to users for a number of reasons (we briefly cover this in the report).

Over the next 5 years, it will be interesting to see how the landscape changes for the TV eco-system. Whatever happens, there will be great opportunities for publishers, distributors and consumer alike. The only question we have is which distributors and publishers will adapt and remain in a position to grow into the digital future.