With US broadband customers set to rise to the same level as pay-TV subscriptions in 2016, the country’s cable and satellite businesses have reached a critical point where their continued growth will hinge on the success of their new TV Everywhere services, according to information and analytics provider IHS.
“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,” said Tom Adams, director and principal analyst for US media research at IHS.
“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?”
IHS forecasts that there will be 99.9mn broadband connections and 100.4mn pay-TV subscribers in the US by 2016. Competition between these two has become central to the future of the overall home entertainment marketplace, according to Adams, who will be speaking on this topic at the CES show in Las Vegas.
“The growing ubiquity of broadband connections has levelled the playing field between OTT Internet-based video services and pay-TV operators,” Adams commented. “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.”
The team behind the TV Connect events hosted their own supersession at CES yesterday, discussing the latest trends in content delivery and the changing content delivery ecosystem – more details here.