May 5, 2014

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How online distribution affects Broadcast Industry

Well, in today’s fast pace and technically sound environment, no one wants to view their favorite programs by the scheduled time with added advertisements and sponsors’ messages; with the availability of subscribed services like Everywhere TV, OTT/VOD (Over the top/ Video on Demand) and live events streaming on their preferred platform, who would mind spending that little penny and watch their favorite programs at their own convenience and comfort.

With the boost in telecommunication in India, we saw each and every person having a cell phone followed by smart phones with the increase in social networking with various apps like Whatsapp, facebook, twitter et all. The scenario is such that a person is being recognized by his or her phone number rather than name these days. Receiving a local courier at your doorstep; courier guy will ask you to add your mobile number beside your signature. This number has literally become an addition to your identity.

With affordable broadband, 3G/4G LTE  technologies being launched globally and becoming extremely popular, Video on demand and Over The Top services like mobile TV or content availability over the smart phones or connected devices is becoming the next big hit and the talk of the town. People can be seen watching programs on their mobiles, but will that be affordable & how broadcasters will change? Is the question that arises and will that be the future of broadcasting through various platforms? Yes, with volume and competition in this area, it will be the future of broadcast as a person doesn’t mind spending that small amount for this kind of ease. This trend is already catching up and surveyed figures show how the spending is changing globally. Please share your comments for further discussion on this topic.

Some Facts on actual & forecasted spending for on-line advertising:  (Source McKinsey & Co, Wilkofsky Gruen Associates)

Total Global Spending by region (US $ Million)

Region

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

North America

396,782

396,262

376,676

392,676

403,955

422,021

439,220

463,582

483,270

510,334

531,814

Western Europe

344,959

355,945

350,181

361,071

375,093

378,417

386,443

396,923

409,351

423,888

439,245

Central & Eastern Europe

33,424

37,380

35,947

39,608

44,853

48,670

53,162

58,124

63,373

68,895

74,451

Middle East/Africa

17,757

20,480

21,248

24,072

30,441

36,939

41,496

46,075

51,946

58,115

64,376

EMEA Total

396,140

413,805

407,376

424,751

450,387

464,026

481,101

501,122

524,670

550,898

578,072

Asia Pacific

342,468

368,189

377,940

409,828

440,768

478,226

518,649

561,585

607,258

652,486

698,675

Latin America

45,888

52,351

56,438

65,923

75,045

85,048

96,176

107,888

116,261

128,453

138,995