The Chief Executive of Digital UK thinks Silicon Valley is trying to fool the TV world with “flimsy evidence and half-truths” about the importance of OTT delivery. Is he right?
Chapter 1: UK TV exec accuses Silicon Valley of half-truths (0:30)
Jonathan Thompson, Chief Executive of Digital UK*, thinks Silicon Valley is over-hyping OTT’s influence on television. Speaking to the Broadcast Press Guild in London this week he said:
“We should be less willing as an industry to adopt the Silicon Valley view of the world based on flimsy evidence and half-truths.”
In his view the foreseeable future would see a blend of linear and SVOD services used by consumers.
Chapter 2: Netflix and Roku data (1:30)
Two Silicon Valley purveyors of OTT data that Mr. Thompson is referring to could be Netflix and Roku. Both have released independent usage data that suggests the average viewer is consuming between 1 and 2 shows per day OTT.
Chapter 3: Europe and US embracing SVOD (3:30)
However, other data from outside Silicon Valley, show that SVOD is growing in popularity in both the UK and US. It also shows that pay TV’s power is waning with television viewers.
Chapter 4: Blended future, fading linear (5:00)
It is clear that a blended television future, where consumers combine linear TV with SVOD, will persist for some time. However, a variety of data sources, including European broadcasters, document SVOD gains at the expense of linear television viewership losses. This trend is particularly apparent in younger viewers.
* Digital UK supports digital terrestrial TV (DTT) in the UK. It also provides operational support for the Freeview DTT platform.