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Consumption of linear TV to VOD services will be 50:50 by 2020 globally: Ericsson report

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Consumption of linear TV to VOD services will be 50:50 by 2020 globally: Ericsson report

The time spent in linear consumption of TV (traditional TV viewing) currently is more than video on demand (VOD) however that is likely to change in the future. According to a research and predictions conducted by Ericsson (Ericsson Media Vision 2020) consumption of linear TV to VOD services will be 50:50 by 2020 globally. Already in some of the key markets globally this trend is prevalent mainly among the younger audiences. This audience is going to grow more in prominence after a few years. TV viewing has changed and will not be defined to one screen.

Even in India the same trend could be predicted although at a slower pace.  Already consumption of content online for certain genres is more online and this is likely to continue.

The research also says that market revenues in the TV industry globally by 2020 will be expected to grow to $750 billion, up from $530 billion in 2013. This will be mainly driven by advertising. The distribution will be between content owners, broadcasters, TV service providers and network providers but there will be shifts seen.

According to the research, 50% of the consumption will be on demand and not on EPG which guides us to watch programs. This will be done through smart algorithms that will look into our past consumption behavior and through social network sites in recommending what you should watch. Streaming TV has in fact caught up significantly with linear TV viewing with a difference of only 2 percent globally according to the Ericsson Consumer Lab TV Media report.

The research also sees mobile driving this trend to the future. By 2020 it is expected that 50% of video consumption will be on mobile. We can also see this in India where smart phone penetration is increasing rapidly. This will also boost VOD consumption tremendously when 4G services come into place.

Thorsten Sauer, VP, Head of Broadcast Services, Ericsson says that over-the-top (OTT) service will become a must for TV service providers and content owners. In fact OTT will be a very common way of reaching out to people and the word OTT too might not be used as much as it will be a common way of distribution in the future.       

He further says that broadcasters must not fear OTT players but must try to learn from them. They will have to expand and have to get into the game where they can create better products in order to grow.

The rules of the TV industry are changing fast and though these insights might be on a global level, India is not that far when it comes to OTT and VOD technology. There are already many entrants that have come up in the last two years in this space. We can expect many more to join in and may even see bigger players such as Netflix and Hulu enter the country.


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