Broadcasters must accelerate their streaming strategies to stem the losses from traditional broadcast, according to data released by Caretta Research.
By the end of the decade, broadcast and pay-TV are expected to lose $42 billion (€38.22 billion) in revenue, while streaming is expected to grow by $93 billion.
At the same time, says Caretta, traditional TV household penetration is in decline, and broadband penetration is increasing, signalling an urgent need for broadcasters to accelerate their streaming strategies.
“Broadcast and streaming are both huge opportunities in the next five years and successful strategies need to address both audiences. Recent content sharing and cross-promotion deals between ITV and Disney, and TF1 and Netflix, show how broadcasters and streamers are starting to think outside their own apps to achieve this. These deals also put further pressure on pay TV operators’ role as content aggregators, ” explains Dan Simmons, research director at Caretta Research.
“For technology vendors the opportunity has moved past streaming enablement. To thrive, they must provide efficient solutions that help media companies manage the operational, technical and contractual complexity arising from distributing content across an increasingly wide array of partners, platforms and deals to maximise audiences,” Simmons added.
The situation is most acute in Europe where TV set ownership is declining. The number of households with broadband access will surpass those with a TV set by 2030, enabling Wi-Fi-connected smartphones and tablets to challenge the TV set as the key devices for reaching mass audiences.
