It’s that time again when analysts in the broadband and pay TV arenas attempt to peer into the next year and bravely predict what might be coming down the pike as we get ready to take another trip around the sun. Last week, there were bright predictions for the potentials surrounding the Internet of Things (IoT), smart home deployments, and voice-controlled devices, which you can read more about here. And a new report released on Monday by Strategy Analytics is forecasting a good year for digital advertising as well as continued disruption in distribution models.
“As a result of the proliferation of broadband and connected devices consumers have more choices than ever in how, when, and where they connect with music, games, and video,” Michael Goodman, director, digital media strategies at Strategy Analytics, says. “As consumer adoption of online alternatives grows the degree of disruption felt by traditional distribution models is accelerating.”
While over-the-top (OTT) video will continue to enjoy a lot of hype, traditional TV will reap a lot of rewards, according to the forecast. “In 2017, TV revenues (subscription + advertising) will account for 88 percent of the $192.7B television and OTT video market in the United States,” the research firm says in a statement.
Strategy Analytics also predicts Twitter will be sold, and live video (especially live video via social networks) will gain a significant audience. It also projects that steady growth of subscription video-on-demand (SVOD) and OTT video ad revenue will mean global OTT video revenue will surpass $50 billion ($50.33 billion) in 2017.
