Published on 8 Jun 2016
While
television viewing habits are changing, especially amid the rise of
streaming outlets like Netflix and Amazon Prime, people will likely
consume more video than ever before in the coming years, according to
one expert. 'We are in a battle for people's time and attention,' said
Russell Sapienza, entertainment & media advisory practice partner at
PwC, which released a five-year outlook report on the entertainment and
media space on Wednesday. 'We see that as one of the shifts occurring
over these five years.' He said the major traditional cable providers -
from companies like Comcast , Charter Communications , Verizon
Communications and Cablevision - are working on 'streaming only' options
in an effort to compete with the aforementioned streaming giants.
'There are about 10 million households with a broadband line coming into
the home with no television,' he said, adding that these households
represent an important opportunity for TV and video providers. Sapienza
doesn't see much of a battle between the old players and the new
players, like Netflix and Amazon. 'I think everyone will prevail,' he
said, adding 'I think you will have this traditional linear option that
tends to be shrinking, but not very fast. And you have a demographic of
youth who are consuming media at different times on different devices
and there are players out there offering TV everywhere.' In order to
grow, Sapienza found that cable and streaming companies must tap into
overseas markets, many of which are buoyed by a growing middle class and
higher disposable income. 'We used to monitor about 30 countries and we
are now monitoring 54 where media is taking hold,' he added. PwC said
total U.S. TV and video revenue will reach $122.09 billion in 2020,
compared to $119.77 billion in 2015. The number of U.S. pay-TV
subscribers will reach 101 million in 2020, from 100 million in 2015.
TheStreet's Scott Gamm reports from Wall Street.
