Broadband Operators Well Positioned to Capitalize on Accelerated Connected TV Growth
March 18, 2021
- With millions of bored consumers waiting out the pandemic at home this past year, 2020 was a tipping point for connected TV on-demand video streaming services, which drove an acceleration in cable cord cutting.
- Major media companies have started to prioritize their streaming services. Warner Bros. is now simultaneously releasing movies in theaters and on its streaming service HBO Max, and Disney has reorganized its business around producing and distributing streaming content.
- In 2020, streaming service providers added tens of millions of new customers, and more people now watch TV via a connected TV device versus the traditional linear programming model, according to some estimates.
- Despite the surge in cord cutting, some cable operators have been able to expand their margins with a broadband-first strategy.
- Several indicators suggest the connected TV phenomenon could accelerate in 2021, which should help improve margins for those cable operators who embrace this trend.
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