Companies should be prepared to operate with a nonlinear mindset
On any given day, I encounter some version of truly remarkable statistics about the rise of video on-demand as a percentage of the total amount of viewing. At the recent NextTV Summit ,Jay Samit of Seachange proclaimed that 50 percent of all U.S. viewing is now on-demand.
Perhaps more sobering and relevant to broadcasters is this from Needham: revenue paid to U.S. TV content companies per person per hour is $0.30 by the linear TV ecosystem, $0.11 by Netflix globally, $0.03 by YouTube.
These numbers are important when we consider the increasing price content producers are paying to support other platforms. The companies producing content for these multiple viewing streams face a growing challenge in the form of operational costs.