Question 1

Is broadcast television still a viable reach platform for advertisers?

Accepted Answer

Broadcast television maintains a high reach of 86.1%, but the audience profile is deteriorating as younger viewers migrate to digital. In 2015 alone, viewing among the 18-39 demographic fell by 15%, signaling an irreversible shift in consumption habits.

Question 2

How quickly is the shift to on-demand video occurring?

Accepted Answer

The transition is accelerating, with non-linear video viewing time recording a 26% CAGR between 2011 and 2016. This momentum is expected to drive SVOD household penetration to 32% by 2020, fundamentally disrupting the traditional linear business model.

Question 3

Where is the advertising money moving in the medium term?

Accepted Answer

Capital is flowing rapidly toward digital channels, which are forecast to capture 60% of total advertising expenditure by FY21. While linear TV advertising remains resilient due to its immediacy, it cannot ignore the 2.31 million connected devices now accessing catch-up services every week.

Question 4

What is the total market opportunity for subscription streaming services?

Accepted Answer

The SVOD sector is maturing into a major revenue pillar, with total market revenue forecast to reach $535 million by 2020. Traditional broadcasters must pivot to capture this digital revenue or face terminal decline as their traditional cost bases become unsustainable.

The future of free-to-air television. Part 1: The Video Revolution

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