LONDON, UK – A report from Informa Telecoms & Media says that legitimate online TV and video services will generate revenues of US$7.9 billion in 2013, almost six times the 2007 figure.
The Informa report, called Online TV and Video: The over-the-top challenge to traditional TV, says online TV and video is not a marginal technology as some might believe.
Advertising will consistently outperform à la carte and subscription-based download services in terms of revenue generation, the report said, and North America will be the largest revenue-generating region, accounting for 63% of the 2013 global total.
“The Writers Guild strike brought much of Hollywood to a standstill for several months. The fact that revenues derived from online TV and video were at the heart of the dispute indicate just how important this sector has become,” said the report’s author, Adam Thomas.
While the Internet has long been considered a technology of the future for film and TV executives, it is now having a measurable impact on traditional sectors, indicating that its time has come, the report said.
“Digital media is changing the consumption of TV from an ‘on-the-couch’ to a ‘watch anywhere’ activity. Content has become interactive rather than passive, with the emergence of ‘citizen media’ concepts, such as blogs and social networks,” it said.
The biggest negative for broadcasters and content suppliers is the potential for online TV and video to hurt their existing business models.
“To date, its harmful impact has been limited and there are examples of a beneficial effect, with CBS and NBC both reporting improved TV ratings for programmes showcased online.”
The report has found that content companies actively co-operating with the leading online TV and video services are best-placed to avoid any potentially harmful effects.
www.informatm.com
