TV market saturated

Gartner believes new media stakeholders make for a “crazy quilt of business”

July 1, 2009

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Gartner believes new media stakeholders make for a “crazy quilt of business”

The battle for the future of TV is underway in the United States with an overabundance of stakeholders pushing for greater influence as TV and computing converge, according to Gartner, Inc.

“At the moment, the future of TV is clouded by an excess of stakeholders, most of whom have a defensible position in television’s future,” said Allen Weiner, research vice president at Gartner.

“New stakeholders, such as telco providers, Web search engines and portals, and new media titans, such as Apple and Microsoft, make for a crazy quilt of businesses and competitors looking for a significant stake in the future of TV, even if revenue models for next-generation broadcasting remain a mystery to most.”

Weiner said that regardless of market segment, a number of overarching factors will dictate which of these stakeholders emerge with what level of future power. These factors include the ability to react quickly to new technology, regulatory influence, the ability to create close ties with investors and the ability to follow trends in consumer media usage.

Gartner said that successful stakeholders will need to partner with organizations in different market segments to fully enable the future of TV.

“In order for content to ultimately be delivered to consumers outside of traditional paths of linear programming, such as cable and satellite, a number of market segments need to come together, namely content, bandwidth, devices and cloud-based services,” said Andrew Frank, research vice president at Gartner.

At the same time, consumers and advertisers are playing a key role in funding the entire enterprise, while the role of regulators, which has been extremely prominent in established broadcasting, remains relatively ill-defined in the over-the-top world.

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