REPORT: DIGITAL SPENDING TO RISE 30% IN '17

A study out of the U.K. is predicting that spending on digital content will spike another 30% next year, hitting $180b as more broadcasters and telco operators expand their menus of unique offerings. For the music industry, it means finding pipelines into cellphones for videos.

The surge in use, Juniper Research reports, will come from entities such as Twitter offering NFL content as well companies such as Spain’s Telefonica, which plans to produce eight to 10 TV series beginning in 2017. BT and AT&T are considering commissioning original programs as well.

The paper’s author, Juniper’s Head of Forecasting & Consultancy Windsor Holden, cautions that sports are not the sole answer. “The spiraling cost of most premium sporting rights means that bidders for exclusive live rights for must now pay several hundred million dollars per season. With most streamed audiences well under a million, this is likely to deter online-only players in the short and medium term.”

The report, Digital Content Business Models: OTT & Operator Strategies 2016-2021, suggests that Over The Top players strike deals with companies such as Spotify either through joint ventures or by acquiring stakes in companies already operating on a subscription model. Key is to offer consumers bundled “zero-rated” content that does not impact monthly data allowances.

The report further states that Brits who are asked, “What’s on the television?” are no longer allowed to answer, “Looks like a penguin.”