US Senate Examines the Future of Video
This afternoon, the U.S. Senate Committee on Commerce, Science & Transportation is examining the future of the video marketplace at a very exciting time. Consumers are now enjoying what many are calling "a new golden age" of video services – more choices, new technologies and incredible content. There has been an explosion of innovation and technological changes, leading to more choices for consumers than ever before.
So what’s happening in the video marketplace today?
Nielsen reports that YouTube reaches more U.S. adults ages 18 to 34 than any cable network. YouTube has 1 billion unique visitors a month. 100 hours of content are uploaded every minute.
Netflix has over 35 million domestic subscribers – more than Comcast and Time Warner Cable combined and has a $3 billion content budget – bigger than many cable networks.
Cable’s share of the traditional multichannel video market has dropped from 87% in 1999 to 56% in 2012. And falling.
At the same time as this explosion of alternative video, traditional television viewing has remained essentially constant, with the average adult consuming more than 5 hours a day of live TV.
My written testimony details how government policies that removed barriers to competitive entry and reduced regulation have allowed the market to grow and flourish with more companies than ever before – both large and small – producing high-quality and diverse programming; competing to deliver that programming using an unprecedented array of innovative technologies and business models; and experimenting and competing in both the production and delivery of content.
This pro-competitive policy environment encouraged the $1.2 trillion that cable companies, phone companies, and wireless companies have invested to bring broadband Internet to every corner of America which is making this new age of video possible. Comcast alone offers high speed data services to tens of millions of households, increasing speeds 13 times in 12 years, investing billions to double the capacity of our network every 18 months, and driving the price per Mbps down 92 percent since 2002.
Thanks to this investment in broadband networks, online video distribution has flourished. The number of online video subscribers more than tripled from 18.2 million in 2010 to approximately 54 million in 2013.
Video viewing options will continue to grow as even more companies, including such powerhouses as AT&T, Verizon, DirecTV, Dish, Amazon, Apple, Sony, Google, Netflix, and Facebook, compete for their attention and loyalty. The chart below details just the innovative announcements our competitors have made since our transaction with Time Warner Cable was announced. When we innovate and invest, so do our competitors.
All of this is great for consumers and our economy. And it will ensure that the "new golden age" of television extends well into the future.
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