Future of Television

The television industry is not the industry it was a decade—or even a year—ago. The TV market is seeing rapid, continual shifts: new technologies, new trends, new business models. Success means understanding, anticipating, and leveraging all of them.

We created the Global Institute for the Future of Television (GIFT) to provide the insight—and spark the dialogue—that shapes strategies and leaders. It’s a think tank that brings out cutting-edge BCG research. But it’s also a forum that brings together television and video industry leaders—from content creators to television broadcasting, network, and streaming executives. Through research, discussion, and deep dives on the latest trends, our experts identify new ways to succeed.

How We Help Shape the Future of Television

Winning in today’s market requires more than great content. It calls for a deep understanding of viewers: what they want to watch, how they want to watch it, and what keeps them from turning the dial—or deleting the app. It requires new approaches to producing content, new go-to-market strategies, and new ways to interact with customers. It demands skillful—and continuous—adaptation, as well as innovation in future television technology.

Our Global Institute for the Future of Television helps on all of these fronts by unleashing the power of analysis, technology, and networking:

• The future of streaming. We surveyed 3,000 consumers, identifying three major steaming battlegrounds—each with different competitive dynamics. For mass-appeal subscription video-on-demand (SVOD) services—the players with more than 50 million subscribers—success depends on wooing customers from other large services, leveraging content but also secondary drivers like bundling and an easy enrollment process. Niche SVOD players have opportunities to flourish, too, but at relatively low subscriber levels. And for mass-appeal advertising-based services, we found that a “free with ads” model is more effective than incremental content investments in wooing those users who have resisted the future of streaming.
• Churn and retention during COVID-19. To understand COVID’s impact on the video industry, we surveyed 6,000 over-the-top users. While video consumption increased, the rise was skewed towards streaming services, which has important implications for the future of cable television and advertising. Overall, 47% of households spent more time watching linear TV. But 54% of households increased their time on OTT services. We also saw a greater churn risk for services that users acquired during the pandemic—with that risk highest for niche SVOD. Matching the right subscriber with the right churn-reduction measure will require a deep understanding of customer segments. Our analysis explored emerging behaviors—and how best to respond.