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Deloitte anticipates huge pay-TV boom

More than 2.5 million Canadian households will have multiple TV subscriptions, paying for TV through a traditional distributor and at least one other OTT (over-the-top) TV service, up over 150% from 2012 levels. By the end of 2014, the number of households that will pay for a second basket of TV content will be more than 100 times greater than the number of households that have cut the cord in 2013, and cancelled their subscription TV, according to Deloitte’s 2014 Technology Media & Telecommunications (TMT) Predictions report.

Deloitte’s TMT Predictions are based on global research including in-depth interviews with clients, industry analysts, global industry leaders and more than 8,000 Deloitte member-firm TMT practitioners.

“As more and more content owners, aggregators and platforms such as cable, telecom and satellite providers make their content available online through subscription, the number of Canadian households with multiple subscriptions will rise,” says Duncan Stewart, Deloitte’s Director of Research for TMT. “So far, at least, the cord-stackers are running far ahead of the cord-cutters. Households will want the best quality and an abundance of content which will have an impact on bandwidth and put upward pressure on monthly download allowances.”

Organizations that offer apps, content and services will have a greater opportunity to win a share of the consumer’s wallet as Canadians double up, or even triple up, on TV subscriptions. With global combined sales of PCs, smartphones, tablets, TVs and computer gaming equipment plateauing in 2014, technology spending may shift from hardware to the software, content and services categories.

 

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