The entertainment revolution: TV falters against gaming and SVOD
TV has been the dominant media for an entire generation – but it looks like that is changing. A new report by business strategy and technology consulting firm Accenture said less than a quarter of the global population now want to watch shows on regular TV monitors. This drop is explicable, in part, by the rise of other types of viewing: smartphones, laptops, and tablets. And TV is also threatened by alternative forms of entertainment: notably, video games, which are far more popular with the under-30s than TV and film.
Activision Blizzard: +41%; Amazon: +21%; both year-to-date
SOURCE: Yahoo Finance
Companies that provide streaming video on demand (SVOD), like Amazon, and computer game developers, like Activision Blizzard, are having a phenomenal year so far in 2017. Meanwhile, TV networks are struggling to remain competitive.
According to Accenture, the survey (which is conducted online and includes respondents from 26 countries) showed a staggering decline in TV’s popularity. The number of people who choose to watch on TV sets first has fallen by 55% from the same period a year ago! Even in the relatively TV-friendly U.S., people who chose to watch TV before viewing shows on other platforms fell from 59% in 2016 to 25% this year. Mike Chapman, Accenture Strategy managing director and head of the company’s Global media and Entertainment Strategy Practice, described the results as “a very, very, big surprise”.
Canadian research firm Convergence agrees with Accenture’s assessment. Convergence has tracked TV viewership for two decades, and claims that traditional U.S. pay TV services lost 2 million customers in 2016, and a forecast to lose another 2 million this year. Convergence president Brahm Eiley claims it’s an age thing:
“For a lot of people in America under 40 or 45 – they operate so differently than the older generations. They don’t consumer TV in the same way their parents consumed.”
Dominion holds Amazon and Activision Blizzard – as well as numerous other companies that are exposed to the trends discussed in this article, such as Electronic Arts and Alphabet, the parent company of Google – in its Global Trends Ecommerce Fund.
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