Digital technologies changes TV consumptionThe pay TV market is anticipated to decrease in the future, whereas video-on-demand is continuously growing in popularity. Projections indicate that there will be nearly one billion subscription video-on-demand subscribers and over 1.6 billion subscriptions worldwide by the year 2027. Although the methods and specific services through which people access television continue to change, the industry always seems to adapt, as evidenced by the fact that the number of traditional TV and home video viewers amounted to 5.4 billion in 2022.
As highlighted above, the industry is changing rapidly. Over the past two decades multiple technologies have entered the market and have been subsequently replaced by newer ones. Analog terrestrial TV dominated the market in the past but was soon replaced with digital cable TV in the mid-2010s. Already, the new king is being challenged by pay IPTV and satellite TV. But broadcasting technologies are not the only thing that is evolving within the industry. Along with these new broadcasting technologies come advances in television hardware. In the United States, for instance, over three quarters of the population own a smart TV, which combine with these new services to take advantage of internet connectivity.
A profitable marketAlso, the advertising market is characterized by online media. Worldwide, television hold the second highest market share among advertising media after the internet. However, the industry remains extremely lucrative to investors and hugely beneficial for advertisers. After a drop in ad spending in 2020, presumably due to the coronavirus crisis, revenues are predicted to increase in almost all regions again.
Although volatile, the television industry has proven time and time again to be able to adapt to both new technology and the changing demands of its consumers. Unlike many other technologies, television is a truly worldwide phenomenon, and has found its place in the lives of people from all walks of life and every corner of the globe.