MEDIA & TECH TRENDS FOR 2017

TRENDINSIGHTS

2 TRENDS | INSIGHTS

There were several noticeable tech and video trends in 2016 that impacted consumers

and marketers; they may become even more prominent in 2017. Below are six of them.

• eSports turns video game playing into a spectator sport. This activity has been

growing in popularity. With over 40 million viewers, many of them young males, and

rising, content is available online and on TBS. Can we expect a breakout year in 2017?

• In 2016, with political news, sports and the debut of Facebook Live—live streaming

video became a popular. In 2017, Hulu will offer live streaming service to subscribers

from broadcast and cable networks.

• Virtual reality (VR) provides viewers with a 360-degree immersive experience. In 2016,

Syfy introduced a short-form series in VR, and NBC aired some Olympic content in VR.

Major tech companies are continuing to invest in VR.

• A big phenomenon in 2016 was Pokemon Go, which became a household name in July.

The augmented reality app was popular with consumers and location based marketers

see great promise.

MEDIA & TECH TRENDS FOR 2017

3

• Now that high def TV has a household penetration of over 90%, here comes 4K TV,

or Ultra HD, with four times greater the picture resolution. Household penetration is

expected to grow with prices dropping, but 4K content is lagging.

• In 2016 there were 455 original scripted entertainment shows, more than doubling the

amount from 2010. With more original content coming primarily from Netflix, Amazon

and other streaming sources, there could be 500 programs in 2017.

eSports: eSports is video game competition played by professionals for spectators

online, on television or in person. According to Deloitte Global’s report “eSports: Bigger

and Smaller than You Think” released in 2016, a major eSports event can have 40,000

people watching in person, and tens of millions watching over the web. A 2016 Nielsen

eSports Report “Highlights Rapid Growth in Fandom of Professional Competitive Gaming”,

found 14% of Americans age 13+ were fans of eSports, an increase from 8% in 2015 [1].

Nielsen also said eSports is particularly popular with males (77%) and Millennials (61%).

A 2016 study by Newzoo “The U.S. eSports Audience”, said there are 41.7 million regular

or occasional viewers to eSports in the U.S [2]. Moreover, the Nielsen’s report found fans

spend an average of four hours each week with eSports. It’s already been a popular

online activity, led by YouTube and Amazon’s Twitch.tv [3]. In June 2016, Activision

Blizzard announced plans to stream eSports content on Facebook Live [4]. eSports

made it TV debut in May 2016, when TBS began airing an eLeague series on Friday nights

[5]. For 2017 Mashable expects larger prize money for competitors, more viewers and

traditional sports franchises (e.g., NBA teams) getting more involved with eSports [6].

Live Streaming Video: With sporting events, awards shows and political news coverage,

live streaming video became popular with viewers in 2016. With more video content, the

growth of mobile, and a push from social media, live video streaming is poised for growth

in 2017. Live streaming first became popular with the launch of Meerkat and Twitter’s

Periscope apps in early 2015 [7]. In 2015 Facebook Live was launched for celebrities only,

before becoming available to all users in April 2016 [8]. Also in early 2016 Twitter outbid

Verizon and Amazon to live stream ten NFL Thursday night games [9]. In addition, in

December 2016, CBS All Access also began streaming live NFL games [10]. For 2017,

Hulu said it will launch live programming from cable networks and broadcast networks

including content from two of its parent companies Disney and Fox as well as CBS [11].

TRENDS | INSIGHTS

4

Hulu said the live service will cost subscribers less than $40 monthly. The new live service

will complement its current on-demand offerings [12].

Virtual Reality: Virtual reality (VR) could be ready for growth in 2017. VR provides viewers

with a 360-degree immersive experience in a simulated environment requiring specific

equipment. PC World reported in 2016 there were several VR headsets introduced to the

market, some were connected to high-end PC’s, others to a mobile phone powered by

VR [13]. Although VR content is more prevalent with video gaming, there was also some

television content available. For the 2016 Rio Olympics, NBC televised 85 hours in virtual

reality [14]. In September 2016, Syfy premiered Halcyon, a 15-part series. According to

The Hollywood Reporter, the series had ten episodes to view on Syfy’s linear channels

globally and online; with five additional episodes viewable only in VR [15]. CNBC reported

that so far, there have been a limited number of VR advertisers in such categories as tech,

automotive as well as a few prominent marketers [16]. Business Insider anticipates the first

“killer app” will hit the VR market in 2017 [17]. PC World says in 2017 there will be more VR

content and expects the cost of equipment to drop boosting consumer

adoption [18].

Augmented Reality (like Pokemon Go): Augmented reality (AR) overlays virtual and

digital content into an existing (real-world) environment on a smartphone or tablet. For

the first six months of 2016, few people had heard of augmented reality. That changed

on July 6 when Pokémon Go was launched in the U.S. Variety reported that Pokémon

Go became the most popular game app in U.S. history on both Android and iPhone in its

first week [19]. At its peak, in mid-July, Bloomberg reported there were 45 million daily

users worldwide playing on smartphones, running around looking for virtual demons.

Bloomberg also noted the game’s popularity did later cool off [20]. In a report released

in July 2016, Statista said in the U.S., 63% of the Pokémon Go players were female with

nearly half of them 18 to 29 year olds (who remembered Pokémon as a kid). Sensor Tower

said that on July 11, 2016, iPhone users spent an average of 33 minutes and 25 seconds

daily on Pokémon Go, more than time spent on Facebook, Snapchat, Twitter or Instagram.

Marketers are also interested in AR, The Guardian said McDonald’s was the first advertiser,

as restaurants became “Pokémon Gyms” in 3,000 locations across Japan [21].

TRENDS | INSIGHTS

5TRENDS | INSIGHTS 5

6 TRENDS | INSIGHTS

4K TV: 4K TV (also known as Ultra HD) has four times the picture resolution of high-def

(HD) sets. At present, 4K content has been limited, although NBC had 83 hours of the 2016

Olympics available in 4K [22]. Many 4K programs are available on Netflix and Amazon

(many 4K sets are web enabled) as well as some movies and sporting events [23].

According to IHS, U.S. penetration of 4K TV sets will increase from 10% in 2016 to 34% in

2019 [24]. Driving growth is cost; in 2016, the average price for a 4K TV set dropped below

$1,000 for the first time and IHS forecasts the price to average $830 in 2017 [25]. As 4K

TV becomes a commodity, can 8K TV be far behind? According to Consumer Reports,

some TV manufacturers are already showing examples of 8K displays, or TVs with four

times the resolution of 4K sets [26].

7

More Scripted Entertainment Shows: The number of scripted entertainment programs

(excluding daytime dramas, children’s shows and specials) continues to grow each year.

According to FX Research, which tracks the figure each year, in 2016, there was a record

high 455 scripted programs across broadcast, cable, pay cable and online services, an

increase of 34 from 2015. This was more than double the 216 scripted shows produced

in 2010 [27]. Although basic cable is the top provider of original programming, online

providers have been fueling the growth recently. The number of scripted programs on

online services doubled in 2016 (from 2015) to 93 [28]. This trend will continue, Netflix

announced it will commit $6 billion to content in 2017, increasing from $5 billion in 2016

[29]. In its second quarter 2016 earnings report, Amazon said it plans to double its budget

for original content in the second half of 2016 compared with that of the second half of

2015 [30]. In 2017, CBS All Access will debut online The Good Fight (a Good Wife spin-off)

and Star Trek: Discovery [31]. Furthermore, Apple is reportedly in talks with Hollywood

producers about offering original video content that could be available as soon as the end

of 2017 [32]. FX says 500 programs in 2017 is possible [33].

FOOTNOTES:

[1] Nielsen’s eSports report released on November 4, 2016

[2] Newzoo eSports study released on July 26, 2016

[3] Fortune, February 26, 2016

[4] Variety, May 12, 2016

[5] Adweek, February 8, 2016

[6] Mashable, December 28, 2016

[7] Fortune, April 27, 2016

[8] USA Today, April 6, 2016

[9] Fortune, April 15, 2016

[10] Variety, December 1, 2016

[11] Wall Street Journal, January 4, 2017

[12] Variety, January 4, 2017

[13] PC World, December 22, 2016

[14] Variety, June 30, 2016

[15] Hollywood Reporter, February 12, 2016

[16] CNBC, August 19, 2016

[17] Business Insider, November 18, 2016

[18] PC World, December 22, 2016

[19] Variety, October 24, 2016

[20] Bloomberg, August 23, 2016

[21] The Guardian, July 20, 2016

[22] Variety, July 27, 2016

[23] Consumer Reports, December 16, 2016

[24] Fortune, June 2, 2016

[25] USA Today, January 3, 2017

[26] Consumer Reports, January 7, 2017

[27] Variety, December 21, 2016

[28] Business Insider, December 23, 2016

[29] Forbes, December 27, 2016

[30] CNBC, July 28, 2016

[31] Hollywood Reporter, January 5, 2017

[32] Forbes, January 12, 2017

[33] Hollywood Reporter, December 21, 2016

TRENDS | INSIGHTS

www.ComcastSpotlight.com