IHS Technology (2015)
|IHS Technology (2015)
|Current Market and Technology Trends in the Broadcasting Sector
|IHS Technology, Current Market and Technology Trends in the Broadcasting Sector, WIPO Standing Committee on Copyright and Related Rights, SCCR/30/5(Jun. 2015)
|Definitive , Open Access
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|About the Data
|IHS maintains a continuously updated database of technology and media market trends, television industry intelligence and historical and current analysis of technology and media developments collected using primary research methodology. IHS analysts regularly conduct interviews with market players and industry bodies. To complement the approach towards data and trend collection, specific interviews have been conducted, where appropriate, with market players, industry and trade bodies, consumer electronics manufacturers and regulatory authorities to gather and assess opinions on specific issues relating directly to concepts discussed within this report.
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Like so many facets of the modern world, television has been transformed by the application of digital technologies and the parallel and related development of the fast evolving Internet. While some broadcasters – especially those in developing economies - still utilise traditional analogue transmission techniques, most have transitioned to more efficient and powerful digital means of sending their programming to viewers. Use of digital technologies has enabled explosive growth in the number of channels and choices of programmes offered. It has also ceded more control to the viewer, allowing on-demand access to programming – not only from broadcasters and pay TV service providers, but also increasingly from online video services delivered over the open Internet. Indeed, as this report outlines, the definitional boundaries between broadcasting and other forms of digital video delivery are increasingly blurred.
The viewer is undoubtedly a winner as a result of these developments as we move ever closer to the ultimate provision of ubiquitous choice, convenience and control. And broadcasters are usually winners too as evidenced by the impressive global TV market growth described in this report. Inevitably, that growth and technological development is not evenly distributed geographically, and we outline some of the key regional trends in the pages that follow, as well as some more focused snapshots of the market evolution within selected countries.
However, this report also highlights a paradox at the heart of this technological revolution; namely, that the ceding of ever more control to the viewer also inevitably means an increasing risk that broadcasters lose control of their programming. It becomes harder and harder to prevent unauthorised access to the copyrighted content that traverses the globe at lightning speeds as digital ‘bits’. This poses an ever greater threat to the economics of intellectual property that sustain the broadcast and related industries.
Main Results of the Study
- Television has been transformed by the emergence of digital technologies and the internet. However, while the online TV sector has been growing since 2009, traditional pay TV still accounts for the majority of TV revenues. Television has remained similarly resilient in the advertising market, where it maintains the highest share of advertising revenue across all media.
- Online video is currently growing complementarily to TV advertising, but some cannibalization is starting to be observed in the European Nordic region. Television and video delivery platforms are becoming increasingly complex as viewing preferences move towards a world in which content is available on-demand and in a device agnostic manner. The move to digital from analogue delivery methods has been a key trend among traditional television platforms, since digitisation offers less constraint on the number of channels available to viewers.
- The development of the internet has also seen the growth of online video platforms, which has given rise to changing behaviours of viewers around the world, as well as new competitors to traditional TV players.
- Mobile video consumption is growing rapidly, driven by the growth in smartphone adoption and advanced 4G mobile data networks. However, direct monetisation of mobile video is challenging, with users opting for free services or video delivered as part of a wider premium pay TV or online video subscription, for which there is no additional fee for mobile access.
- The digitisation of all content has unified delivery platforms, meaning that future technologies a more fluent interchange between different platforms. For example, a satellite TV image can interface with internet content delivered over mobile. This places pressure on video distribution to move towards higher quality video. The cost of this has two aspects: the availability of a network or spectrum to deliver, and the technologies needed to improve the efficiency of delivery over a given network.
- For broadcasters, a drawback of the increasing prevalence of digital technologies and changing viewing behaviour is that the ease of obtaining unauthorised access to copyrighted content has increased. As a result of this, various types of piracy have arisen, which bring with them the risk of broadcasters losing control of their programming, as well as threatening the economics of intellectual property. The impact of shifting audiences on global TV and advertising revenues will largely depend on the legacy structures of each country’s TV and wider media ecosystems.
Policy Implications as Stated By Author
While the viewer and broadcaster can both benefit from developing technology and access to media, digitisation can make it more difficult for the copyright owner to prevent unauthorised access intellectual property, which can present a threat to broadcasting industries.
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