Global TV and video revenue to remain flat over next 5 years

Global TV and video revenue will remain flat over the next five years, with significant growth not expected until 2020, according to The Diffusion Group.

The Future of TV Monetisation report reveals that since 2004 TV and video spending has risen from $195 billion to $213 billion in 2013 – an increase of just 9% and equivalent to a compound annual growth rate (CAGR) of 1%.

While new viewing platforms such as TV Everywhere and pay-TV video on-demand are showing “promising in-market results”, the report states that they are still “relatively nascent” and taking shape in a business landscape which is known for changing at a slow pace.

“It takes a long time to take new platforms from first in-market trials to fully-realised revenue-generating ecosystems,” said Bill Niemeyer, senior advisor at TGD and author of the report.

“There will be revenue winners and losers during the next five years, but the total TV/video dollar pool will stay the same.”

Niemeyer added that even as TV Everywhere and VOD are implemented, operators and content providers have key decisions to make about going forward on new advanced techniques and technologies.

“These will be critical for long term growth, but will not begin to generate significant revenues until after 2020,” he said.