Internet-connected smart TVs are growing in popularity with 5 per cent of households now owning one – allowing consumers to “Turf” – watch TV and surf the web. Despite the growth in online catch-up TV through PCs and mobiles, the main TV set remains the dominant device for consuming audiovisual content with just 29 per cent of adults watching online compared to 97 per cent who watch through a TV, and there is some evidence that the growth in catch-up TV usage is slowing.
But it is not all social convention – part of the reality of life is the paradox of choice, and this is, in part, why in UK the main terrestrial broadcasters retain such a large share of the viewing market – it is easy to find something that is okay on a channel you know, so you will watch it, even if there might well be something better if you devoted the time to looking.
So what does this mean for the new generation of internet-distributed television broadcaster replacements? It is not a problem, but there needs to be a recognition that despite the technology, we are a long way from that brave new world in which the traditional broadcasters are no more. UK TV industry revenues overall continue to grow, and advertising revenues have bounced back post- financial crisis.
It is clear that the industry is changing and the revenue opportunities are evolving, but it is less clear that traditional broadcasters will be losers in this new world. Perhaps, whatever the detractors might claim, traditional broadcast television might have the last laugh after all.
James Bateman is head of multi-manager and multi-asset portfolio management for Fidelity Worldwide Investment
