As Internet TV, DVRs Expand, Satcasters Hard Hit

Nontraditional television distribution -- Internet-connected TV content with no cable or satellite -- will rise to over 7% penetration of U.S homes in six years, and over 20% by 2020.

New analysis from Interpublic Group's MagnaGlobal, in what it calls "Over-the-Top" video distribution, will impact 8.5 million homes by 2016 and 27.3 million by 2020. The report suggests satellite distributors could be the most hurt from this activity. "Satellite-based video services are more likely to face erosion of their subscriber bases than are telcos and cable operators, given that their platforms do not offer high-speed data services," writes Brian Wieser, global director of forecasting for MagnaGlobal. MagnaGlobal believes "this will contribute to a continuous expansion of the market for multichannel video services, as new video packages (the combination of programming, features and pricing) could vary meaningfully from today's offerings, and thus may attract new segments of subscribers."