TV Industry Faces More Disruption over the Next 12 Months

CCS Insight’s Observations on the Future of the Broadcast Industry

High-profile mergers drive multiplay services across Europe and into the US

Netflix predicted to be acquired by a leading Web player in 2015

“TV everywhere” to be fuelled by new network technologies

Highlighting the rise in consumers’ appetite for multiplay services, the TV industry has seen several providers merge and others invest heavily in broadcast rights. Multiplay services have made huge advances across Europe, with the US to follow, says global analyst firm CCS Insight. However, ahead of this year’s IBC event in Amsterdam, the company warns that the TV industry will continue to face major disruption as Web brands and traditional TV providers fight to be the first to launch live TV programming in 4K.

Paolo Pescatore, Director of Multiplay and Media at CCS Insight, said: “We’re in a new golden era of TV distribution. As pay-TV companies have moved into offering phone and Internet access, leading telecom providers have responded by adding TV to their service bundles, trying to stay competitive in an increasingly congested market. There’s no doubt this is an exciting time for media owners, who can now choose from a plethora of ways to distribute their programmes to audiences.”

More Observations on the Future of the Broadcast Industry from CCS Insight

Consolidation Takes Place throughout the TV Supply Chain over the Next 12 Months

Building on the mergers and acquisitions by major pay-TV and telecom providers in 2014, newly created entities will have more power over prices and exclusivity with their suppliers. Smaller media owners will be unable to compete with large established players, leading to consolidation, particularly among content and media owners in 2015.

A Major Web Player Buys Netflix in 2015

Paolo Pescatore explains: “All Web players are looking for a stronger presence in paid-for video, something Netflix has achieved with remarkable success. An acquisition by a Web company would give Netflix more reach and greater stability as it expands; potential suitors include Google and Alibaba, which, given Netflix’s difficulties in Asia, could form an attractive partner.”

Web Players from the East Launch Home-Grown Video Services in the West

Video is proving to be a major battleground for many Western Web companies, and their counterparts in Asia are set to follow suit and try to differentiate through home-grown video content. Licensing restrictions prevent many expatriates from watching media from their native country. Eastern Web players are acquiring the rights needed to do this while also investing heavily in original content, following in the footsteps of Amazon and Netflix. In addition, Eastern Web players are investing billions in rights to Western content to import across Asia, challenging Netflix and Amazon as they look to move into these markets.

Traditional Set-Top Boxes Become Virtual as They Transition into the Cloud

Paolo Pescatore said: “Dongles have provided some early disruption in this area, and moves by companies like Magine to offer cloud-based multiscreen services raise the questions about why service providers need to deploy set-top boxes in the future.”

Margins are being squeezed, putting pressure on costs of supporting and subsidising set-top box hardware. Service providers must exploit their network assets to offer users a truly “TV everywhere” service, aided by software defined networks, virtualisation and more-efficient routers.

Paolo Pescatore will be at IBC; follow his tweets from the show at @paolopescatore

About CCS Insight

CCS Insight is a global analyst company focussing on mobile communications and the Internet. It provides comprehensive services that are tailored to meet the needs of individual clients, helping them make sense of the connected world. Follow @CCSInsight on Twitter or learn more at

For further information contact:
Sarah Wilson
Harvard PR
Tel: +44 20 7861 3933

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