Top Story

Home >> Media-TV >> Article

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

27-May-2015
Font Size   16
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.
 

Tags

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE

Kavinder Singh talks about the brand’s advertising and marketing strategy and tells us how it has has played an integral role in the rise in its standalone net profit to Rs 38.55 crore

Meanwhile in Top 10 Advertiser Reckitt Benckiser overthrew Hindustan Lever to lead the category

Gaurav Dua, Executive Director, Relaxo Footwears talks to exchange4media about the brand's re-branding, marketing strategy, future plans and much more