CES 2013: TV Everywhere the key as US pay-TV industry reaches 'historic juncture'
Editor | 09-01-2013
With the country's broadband customers set to rise to the same level as pay-TV subscriptions by 2016, the American cable and satellite industries' growth will hinge on TV Everywhere services, according to IHS Screen Digest.
Given that the increased availability of high speed broadband has been the key driver for the inexorable rise of over-the-top (OTT) services such as Netflix and Hulu, it may seem natural for the pay-TV industry to worry as this critical crossover point is reached.
Moreover, with such dynamics the analyst suggests that the challenge for traditional cable and satellite operators is to deal with a broadband marketplace that will likely reach 99.9 million consumers in three years' time.
By that time IHS Screen Digest expects there will be 100.4 million cable, satellite and telco pay-TV subscribers and that the competition between pay-TV and the Internet will have become central to the future of the overall home entertainment marketplace.
"The growing ubiquity of broadband connections has levelled the playing field between OTT Internet-based video services and pay-TV operators. So now the battle is joined in the contest to provide consumers with the most attractive package of content, applications and devices for their in-home and on-the-go enjoyment," observed Tom Adams, IHS director and principal analyst for US media research.
"Based on our continuing analysis of TV Everywhere and OTT services like Netflix, it's clear that the US pay-TV industry has reached a historic juncture ... Neither print nor audio media have been able to properly capitalise on — or even just withstand — the Internet juggernaut. So, the key question for US pay-TV operators in the years ahead is: will TV Everywhere keep customers coming to them, rather than to their OTT competitors, for video entertainment?"