Steady Growth Masks Seismic Shifts in US Video and TV Market: Futuresource Research
Futuresource Consulting estimates that the US video and TV industry saw a 1 percent rise in consumer spend in 2018, taking the market up to $133 billion. That represents a 53 percent of the global total, with modest annual increases expected for the future, reaching $136 billion by 2022.
“There’s no doubt that 2018 was a significant year for the US video and TV industries,” comments David Sidebottom, Principal Consultant at Futuresource Consulting. “The entertainment landscape was redefined with companies changing their strategies and undergoing some major M&A activity. Disney’s proposed acquisition of Fox and confirmation of its direct-to-consumer service, Disney+, along with the completion of AT&T’s acquisition of Time Warner, were key moments in a turbulent twelve months.”
Sidebottom noted that internationally, “Comcast’s acquisition of Sky brings two like-minded companies together, both considered to have best-in-class Pay-TV service offerings. It also provides Comcast with wider geographical reach and entry into key European markets. Such acquisitions and collaboration will help redefine customer relationships and play a pivotal role in the battle for the living room, but the dust isn’t going to settle any time soon.”
However, as the smart home begins to gain traction and starts to reshape the way that people consume and discover new content, the entertainment landscape could begin to fragment further.
“Many consumers don’t like the idea of relying solely on one company to control the living room and smart home,” says Sidebottom. “They may feel uncomfortable with a single brand being responsible for so much of their personal data. As a result, the wider sector will stay competitive, but there will no doubt be further consolidation. Those with big aspirations of becoming super aggregators of services will need deep pockets and the determination to evolve beyond entertainment.”
(For more information visit https://www.futuresource-consulting.com).