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The UK television industry expects both pay and advertising revenues from online video services to quadruple by 2020, according to new research findings from media management company Red Bee Media.
The research, which surveyed executives from across the UK television industry on their predictions for business models and revenue streams in 2020, found that more than three quarters of participants (78 per cent) are positive about the financial outlook for the industry, expecting growth both in traditional TV revenues and new revenue streams too, such as online services that capitalise on subscription payments and new commercial opportunities. However, incumbent broadcasters and platforms are likely to face growing competition for this revenue, with internet and technology companies expected to be the biggest challengers.
The survey findings are the latest instalment in Red Bee Media’s Tomorrow Calling programme which aims to build a picture of the media world in 2020, its technological possibilities and market dynamics through a series of think tanks, quantitative and qualitative research, one-to-one interviews, live panel debates and white papers.
Among the survey’s key findings:
Bill Patrizio, CEO of Red Bee Media, said that from talking to the industry, it was clear that technology and internet businesses were fast becoming significant players. “The question we need to ask ourselves is whether the innovations brought by these new entrants are going to sustain or disrupt our industry in the years to come. Will the internet be the industry’s friend or foe? And what role will regulatory bodies play in determining the impact and pace of change? If the last ten years have seen the convergence of broadcasting with broadband, it’s likely that the remainder of the coming decade will see a collision and competition between business models driven by consumer demand and expectation and changing patterns of media consumption. Media companies will have to fight hard and innovate in a fast changing, technologically driven landscape if they are to make the most of this flourishing market”.
The research findings were revealed at the Media Guardian Changing Media Summit 2012.