Research: US content markets set for more consolidation | Pay-TV | News | Rapid TV News
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After decades of increasing fragmentation, the US video and audio content markets are due for a period of consolidation.

According to ClearVoice Research, over the last ten years the number of video content channels has nearly tripled, and ClearVoice’s proprietary fragmentation index has more than doubled. These measures plateaued, however, in 2013.

“The lack of meaningful new video content channels since that time suggests that, barring a uniquely compelling service, the potential for new delivery channels to achieve financial viability has likely passed,” the firm said.

It added that a similar dynamic has occurred in the audio content market. Over the last ten years, the number of audio content channels and ClearVoice’s proprietary fragmentation index has more than doubled. Both of these measures, however, have stabilised in the last three years.

“The fact that market fragmentation in the audio and video markets has followed the same pattern suggests the Internet has impacted them in much the same way,” Clearvoice said.

Channel consolidation will be driven by consumer demand for simple, cost-effective and flexible access to media entertainment, along with natural market constraints, such as the amount of time consumers are willing to spend consuming media on a daily basis. The proliferation of delivery channels will ultimately end when the financial threshold for channel viability drops below the break-even revenue opportunity available to new entrants.

“Once the break-even threshold has passed, both cable/satellite and OTT delivery channels will enter a consolidation phase,” the firm concluded.