[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/Bloomberg Swinburne Sees Most TV Revenue from Subs by 2015 6-2-11.mp4[/flv]
With the advent of high speed broadband and streamed online video, an analyst at Morgan Stanley is predicting that by 2015, more than half of all television revenue will come from subscription fees charged to access it. Ben Swinburne says the entire television model is being turned on its head by broadband video, with cable, phone and satellite companies scrambling to protect the average $85 Americans spend every month for broadband Internet and television service.
Among Swinburne’s predictions:
- Cable and telephone broadband will increasingly be the delivery platform for television programming with at least 50% of all televisions connected directly to the Internet by 2015;
- Advertising revenue will continue to lose prominence, with networks and programmers seeking direct payments from consumers in the form of monthly subscriptions or pay-per-view to access even traditional over-the-air programming;
- Satellite television is at a distinct disadvantage not offering broadband Internet access, something satellite companies are trying to change;
- Cable companies will face the potential of “online cable” competitors delivering multichannel video packages over broadband connections;
- Content producers, networks, and the cable industry will continue to maintain a united front against a-la-carte television, which could dramatically reduce the revenue the entertainment industry earns from selling multi-hundred channel cable and satellite video packages.
Swinburne speaks with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” (4 minutes)