The rise of smart, multi-screen streaming media is fundamentally changing the TV experience. This year, for the first time ever, Americans will watch more movies over the Internet than on physical media like DVD and Blu-ray. Ooyala’s Video Index Report found that non-desktop video plays doubled in the fourth quarter of 2011. Tablet sales continue to explode. People now spend more time on Xbox Live streaming movies and TV shows than playing video games. And consumer electronics manufacturers are gearing up to ship 125 million Smart TVs in 2014. Simply put, TV is no longer constrained to a single box, a single screen, or a single UI.
Smart networks, broadcasters, studios and service providers recognize that there’s real money to be made as TV moves into the information age. People are not only watching more movies and TV shows online, they are paying for access to premium video content. Recent studies reveal that over half of American tablet owners paid to watch a movie in Q4 2011 and more than 40% paid for TV content. These are strong signs that we’ve come a long way from Jeff Zucker’s “digital pennies” remark back in 2008.