The XVI Annual Report ""Turning Digital - The Future Can't Wait"" provides an in depth insight of the state of television in Europe and the main trends.
In recent years, consolidation through M&As and strategic alliances in TV sector has been heating up. Consolidation basically follows a cyclical pattern, with economic and regulatory conditions speding up or slowing down this phenomenon.
A number of broadcasters have made a strategic shift to content production, generating revenue from international licensing deals and global/local syndication. This has reduced the casualties due to the reduction in advertising revenues and the rising costs of content acquisition and distribution.
Investments in original content are dramatically growing also following an international pattern driven by streaming SVOD providers (Amazon, Netflix) and traditional only content providers (majors), entering now the distribution arena going directly to the end user, with an increasing offer of OTT services.
Recent 2018 FIFA football World Cup has long been quoted by the tech industry as a major step in live streaming going global. In this new exciting environment, Blockchain, one of the most innovative and disruptive technologies, and 8K, the ""next Big Thing"" in television, will represent a catalyst for change also in the broadcasting industry in the years to come.
1. Executive summary
2. The TV market in 2017
3. Market trends
4. The TV market in 2017
5. Market overview
6. License fees
7. TV Advertising
8. The advertising media mix
10. The multichannel television market 54 Multichannel advertising
11. Fragmentation in TV audience
12. Market Trends
13. Sector consolidation, strategic alliances and new services
14. The Sky case
15. The rise of production investments
16. World Cup strains to reverse sports-viewing: audience heats up
17. Blockchain: a catalyst for change in digital media
18. Royalty distribution and management
19. Rights management
20. Content Resale
21. Moving to 8K
The erosion of traditional pay-TV is continuing but when a realistic broadband Internet alternative becomes available, the erosion may become the outbreak. Even as traditional pay-TV providers form partnerships with former OTT rivals to retain customers, cord-cutting continues to outpace projections.
Largely due to the spectacular rise of online video and the arrival of OTT platforms, in recent years, merger and acquisition activity in TV broadcasting and distribution has been heating up. Consolidation in these industries basically follows a cyclical pattern, with economic and regulatory conditions accelerating or slowing down this phenomenon.
A number of broadcasters have made a strategic shift to content production, generating revenue from international licensing deals and global/local syndication. This has provided protection from slowing growth in advertising revenues and rising costs of premium content. The trend can be seen globally with investment in content leading to the creation of new content kingdoms. The broadcasting industry is therefore undergoing big changes also in this sector.
Investment in original content implies a pre-financing model: the investor (usually the broadcaster) provides a significant amount of money but has less visibility over the content than when it purchases (often international) programmes or sports rights.
Roughly half of the of money on TV programming in the EU is devoted to original national content (including news), with the balance between in-house and independent production varying from one EU Member State to another. The remaining 50% is spent on sports rights and imports of purchased programmes.
The popularity of viewing big events such as the football World Cup and the Olympic Games online means that live-streaming is now a major part of new mainstream TV offerings. Sports broadcasts were once the last thing standing in the TV industry, the only broadcasts that proved able to stand against the ongoing migration of viewers from linear TV to non-linear video-streaming on-demand. In the last few months, however, even sports have proven vulnerable.
Recent 2018 FIFA football World Cup has long been cited by the tech industry as a major staging post in live streaming going global. Live sports streaming is still far from becoming mainstream and available for massive fruition, for the time being. But, even if TV broadcasting should be safe in the short term, the scenario can be different in a few years.
YouTube and Facebook on this respect showed the way, providing extensive clips and highlights rights from both FIFA and via broadcast partnerships. The FIFATV YouTube channel had global highlights of every game and posted 33 highlights videos with more than 10 million views each, the most popular being Portugal versus Spain with 58 million views.
In this rapidly evolving environment, Blockchain is one of the most disruptive technologies. Basically, Blockchain is a secure and encrypted digital database shared by all parties in a distributed network. Any transaction that occurs in the network is recorded, verified and stored in the database and visible to all participants, creating an unalterable transaction log. With the rise of the liquid multiplatform consumer, subscription services are emerging as the primary choice, changing the nature of content creation.
Blockchain can improve transparency and grant creators more control over their content. It can also enable new business models in content distribution and advertising. Blockchain has the potential to disrupt the way content is produced, aggregated, distributed and consumed acting as a catalyst for change in the transforming digital content industry. It helps in many aspects of media business with cost-effective and trustworthy ways. It provides a space where marketers and broadcasters could share consumers data to build and execute addressable video advertising campaigns to Pay-TV customers and streaming device users.
The overall goal is to make data-driven video advertising more efficient and consumer data more secure. If the platform gains ground, the use of programmatic marketing in media could become much more widespread, particularly on television.
As the demand for super-large TV displays grow, the need for higher resolution is set to increase. Just as with 4K, video content might get the ball rolling ahead of both streaming video and TV broadcasting. What makes the difference with 8K is the resolution. An HDTV has a resolution of 1,920x1,080, or about 2 million pixels.
A 4K TV has a resolution of 3,840x2,160, or about 8.3 million pixels. That’s four times as many pixels as an HDTV (doubled in both the vertical and horizontal rows and columns), all crammed in the same amount of space, no matter the screen size, that’s a much higher pixel density, and it is meant to offer a sharper picture. An 8K TV has a resolution of 7,680x4,320 for a mind-bending total of about 33.2 million pixels. That’s four times as many pixels as 4K, and 16 times as many as HDTV.
With TV screens getting larger and larger, sitting closer, to get that immersive viewing experience, the pixels on 1080p and 4K screens can become a visible distraction. However, with 8K, the screen needs to be extremely large to expose the visible picture structure. 8K offers a stronger sense of presence and reality to viewers, and with the amount of detail that 8K provides, even if getting closer and closer to large screen as 70-inches or more, the image appears to be pixel-less in an immersive. 8k is going to be the next big thing in TV, as it looks as inevitable, valuable and exciting.