Legacy to lose out as TV models to undergo more disruption in 2020
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| 10 December 2019

As consumer adoption of online alternatives grows the degree of disruption felt by traditional distribution models is accelerating and this will carry on right through 2020 says research from Strategy Analytics.

In its Media & Entertainment Predictions for 2020 report, the analyst notes that a result of the proliferation of broadband and connected devices consumers have more choices than ever in how, when, and where they connect with films and TV. And looking toward the new year, the firm has made a number of key predictions as to how it sees the year panning out for the industry.

Principally, it sees legacy pay-TV providers in the US as set to will lose nearly 9% of their subscriber base in 2020 while at the same time the subscription video-on-demand market consolidates around the big four – Netflix, Amazon Prime Video, Disney+ and Apple TV+. Ultra HD TV sales are also set to flourish.

It adds that while both traditional media companies and undercapitalised and underperforming privately-held digital pure plays will become logical M & A candidates.

Interestingly, and despite the raid increase in the number of next-generation networks coming onstream in the major markets, the Media & Entertainment
Predictions for 2020 report notes that the disruptive effect of 5G will not be as pronounced in 2020 as generally expected.