While traditional cable operators and TV companies are still standing strong in most markets, they will get replaced by online streaming providers like Netflix, and aggregators like Hulu and YouTube TV, suggests Eleven Sports Network
All the content that is produced around the world garners revenue mainly through three main ways, according to Shalu Wasu, managing director of Eleven Sports Network.
Writing in the APB May 2018 issue, he identified these as the projected US$520-billion advertising spends, the declining pay-TV subscription revenue valued at around $202 billion, and the increasing over-the-top (OTT) subscription revenue estimated at $46 billion.
Comparing traditional pay-TV with OTT and streaming, Wasu described a transition in place. “Delivering content via OTT is easier, more flexible and faster. At the same time, the infrastructure for traditional TV is already in place and, therefore, it is still cheaper to deliver content wherever that infrastructure is present,” he added.
For pay-TV, it is an industry that Wasu believes will still be around for a long time; however, he predicts a continued drop in revenues and penetration. “Some countries that have not had a big pay-TV market, such as Indonesia and Myanmar, may completely leapfrog straight to streaming.”
For more insights from Wasu, obtain the APB May 2018 issue.