TV, Video Spending to Stay Flat

[Smokey]

Total TV and video revenue over the next five years, adjusting for inflation, will remain flat, despite new VOD and TV Everywhere services, according to a new report.

Overall TV and video spending has seen minor growth since 2004, rising from $195 billion (2013 dollars) to $213 billion in 2013, according to the report from The Diffusion Group (TDG). That’s an increase of only 9% during a decade period, equivalent to a compound annual growth rate (CAGR) of only 1%, according to the report.

Since 2010, growth rates of business and consumer spending for TV and video have been negligible, with total spending rising only 3% from 2010 to 2013.

“Even as they implement TV Everywhere and VOD, operators and content providers have to make key decisions now about going forward on new advanced techniques and technologies,” Niemeyer said. “These will be critical for long term growth, but will not begin to generate significant revenues until after 2020.”

Study: TV, Video Spending to Stay Flat | Home Media Magazine (http://www.homemediamagazine.com/research/study-tv-video-spending-stay-flat-33552)

[Mr Peabody]

I have to wonder if TV's being about as cheap as they can be along with the rush to streaming/downloading has anything to do with it. I rather enjoyed being able to go into a B&M to browse for movies to rent. It also seems like the industry is all over the place with several options for viewing like internet, including Roku and similar devices, Apple TV, cable, satellite etc. it would seem all of this would help but it seems with no focus in a direction it could have an adverse effect. Plus DVD still sells, there's Blu-ray and now people are wondering if some type of 4k format will enter the picture. I also see a bit of backlash against cable & satelite for high prices, social media and different outlets talk about "cutting the cable" and going over the air with supplement from Roku/internet content. If it was me my satellite would be gone but my family would probably have me go with it :). Just some thoughts I realize I am very slow to adopt anything computer related. Not being able to get a decent speed has some to do with it.

[Smokey]

I have to wonder if TV's being about as cheap as they can be along with the rush to streaming/downloading has anything to do with it.

Or mediocracy of TV shows and movies may also be factor :)


I also see a bit of backlash against cable & satelite for high prices, social media and different outlets talk about "cutting the cable" and going over the air with supplement from Roku/internet content. If it was me my satellite would be gone but my family would probably have me go with it :)

I get sunday paper that comes with weekly TV programs insert. I browse thru the TV guide and see nothing but cable channels repeating shows, reality shows and old TV shows reruns. And movies seen million times. Not to mention all the commercials coming your way.

The only good channels are premium channels, but you have to subscribe to crappy basic packages first to get them.

I cut the cord three years ago and haven't looked back :)

[Jack in Wilmington]

I feel TV is as good as its ever been as far as content. You have comedies like Big Bang Theory, Modern Family, Mom, Veep and dramas like NCIS, Castle, Game of Thrones, Breaking Bad, etc. I know I could save a lot of money if I streamed my favorite shows, but being retired, I enjoy the convenience of being able to watch what I want, when I want.

[Smokey]

I feel TV is as good as its ever been as far as content. You have comedies like Big Bang Theory, Modern Family, Mom, Veep and dramas like NCIS, Castle, Game of Thrones, Breaking Bad, etc. I know I could save a lot of money if I streamed my favorite shows, but being retired, I enjoy the convenience of being able to watch what I want, when I want.

Cuting cable does not neccssary mean going without your favorite TV show. Some of your shows you mentioned are on local channels (unless you live in rural area), and the rest one can buy it on discs.

But I also undrestand if you have more leisur time on your hand such as being retired, one might want more choices for enterteinment :)

[Sir Terrence the Terrible]

TV and Video spending will remain flat for at least several years. We are hitting the "forks in the road" when it comes to video consumption. There are some that are taking the left road which is streaming. There are some taking the middle road which is disc's. And you have some taking the right road which is cable and VOD. Some are taking all of the roads, which is why none of the roads will get any stronger over the next few years.

We are also seeing a changeover in how consumers consume video. Cable, VOD, and DVD are weakening, and streaming and disc purchase(specifically Bluray) are strengthening. Unfortunately the strength of streaming and disc purchases cannot counter the loss of cable, VOD and DVD disc revenue. As a result, the industry is treading water right now.

Don't see that changing in the near future.