Publication Overview

This annual report is a valuable resource of information on the vibrant global TV sector and incorporates insights, statistics, examples and trends. The report identifies the key issues and directions surrounding the progression of IPTV, Digital TV, Pay TV and internet-based online video services and mobile TV. It explores the trends occurring in multi-play bundling supported by relevant case studies and discussed a future based on Over-The-Top (OTT) services. The report includes unique regional information across North America, Europe, Africa, Middle East, Latin America and Asia Pacific, written by BuddeComm’s Senior Analysts.

Subjects covered include:

• Global Digital TV, IPTV and Smart TV;
• Global online video streaming and Mobile TV;
• Global Triple and Quad play;
• Global spectrum and white spaces trends;
• Global digital advertising and marketing;
• Regional overviews for North America, Europe, Africa, Middle East, Latin America and Asia Pacific.

Researchers:- Kylie Wansink, Paul Budde, Lucia Bibolini, Peter Evans, Paul Kwon, Henry Lancaster, Peter Lange.
Current publication date:- October 2013 (6th Edition)

Executive Summary

The hotly contested global TV and Video Media market

The world of television has changed dramatically over the last few years with the biggest game changer being the Internet. The internet has completely changed the shape of the industry and the traditional broadcasters are certainly no longer in charge of the global viewing habits of consumers! With a choice of cable, satellite and free-to-air as well as online DVD rental, downloading, IPTV and instant streaming services; the consumer now has enormous control over when and how they watch movies and TV programs.

Recently the industry also saw the introduction of Smart TV and while BuddeComm are great believers in the potential of Smart TV; we don’t foresee that the revolution is going to come out of the current generation of this technology because many of the functions offered by Smart TVs are not even being used by the consumers yet.

Viewing quality is also a target area for TV manufacturers with the recent release of 4K TV and curved television sets. Industry predictions for 4K TV, also known as Ultra-HD TV are very positive and the release of cheaper versions are expected to drive the global uptake of these TVs - especially in established Asia-Pacific markets.

Other trends occurring in the TV sector sees the inevitable overtaking of physical DVDs by on-demand streaming and digital download. This will become the primary way in which households enjoy movies and TV and this will play out over the next decade as more and more consumers IP-enable their lounge rooms. Hollywood will also make more content available digitally, removing the earlier release window advantages that DVD still enjoys today. IPTV is expected to have a profound change on the face of TV delivery over the next years through to 2015.

Over-the-Top (OTT) content in particular will be a key to these changes, offering opportunities for advertising and content providers alike. In mid 2013 we saw the launch of Google’s Chromecast which is an exciting new development. The principle behind it is probably the magic formula that is needed to finally revolutionise television watching. If this device delivers what it promises, it will indeed totally change the broadcasting market. The sheer market power of this device is going to deliver a terrible blow to those in the industry which are hanging on to their old broadcasting models, with exclusive rights, premium services, walled gardens, proprietary devices and so on.

Many consumers now spend less time in front of the television set and significantly more time in front of digital devices – PCs, smartphones, tablets and gaming consoles. This shift in viewer habits is causing the TV and Video Media market to become one of the mostly hotly contested sectors right now – and indeed for the next few years to come.

BuddeComm’s new report, Global Digital Media – The Dynamic Digital, IPTV and Smart TV markets provides important insights into the vibrant global TV market which is undergoing significant transformation. This report includes key trends, statistics, case studies and analysis on the key sectors which comprise the TV market including Digital and Pay TV, Online video streaming, Mobile TV and IPTV. It explores the trends occurring in multi-play bundling supported by relevant case studies and a future based on Over-The-Top (OTT) services. In addition the report provides insightful regional overviews written by BuddeComm’s Senior Analysts for North America, Europe, Africa, Middle East, Latin America and Asia Pacific.

Examples of key insights:

• Now more than ever we are witnessing enormous competition in the global TV and video media industries.
• There are a myriad of devices to access TV and video ranging from set-top boxes, game consoles, Smart TV to smart phones, PC and tablets.
• An interesting development is that some mobile devices are also becoming the TV remote control and soon there will be apps that will also address the problem of the mass of remote controls that now monopolise the top of many coffee tables around the world.
• As BuddeComm has been predicting for several years, the future of the digital media is very much revolving around video-based services.
• The potential applications for cloud computing in the broadcasting sector are still emerging but one interesting development in the US is causing disruption. The TV recording service known as Aereo which utilises cloud technology is under fire from the free-to-air (FTA) broadcasters; and in mid October 2013 they filed legal proceedings against Aereo in the Supreme Court.
• Online video streaming already makes up the largest component of Internet traffic.
• In 2013 around a couple of billion online videos are watched worldwide each month.
• In Latin America, Smart TV sales are expected to escalate in Brazil ahead of the forthcoming FIFA World Cup and Olympic Games.
• Improvements in broadband infrastructure drive IPTV implementations in Africa.
• Australia ranks as the highest percentage worldwide of those that download illegal digital content.
• On the back of Asia’s aggressive development and adoption of broadband internet, we have seen a rapid expansion in IPTV services, mostly in a number the more developed markets.
• Growing fixed and mobile broadband penetration is driving IPTV and OTT initiatives in the Middle East.
• Media convergence in the USA has seen the steady merging of voice, video and data applications, including broadband, VoIP, digital and broadband TV (IPTV).
• As with the North American pay-TV market, in Europe the phenomenon of cord-cutting is gaining traction.
• During the last two years in New Zealand, infrastructure improvements as well as the gradual rollout of national fibre infrastructure, has made IPTV viable for a growing proportion of the population.

Data in this report is the latest available at the time of preparation and may not be for the current year