It seems tech is taking over everything.
Ridesharing companies Uber and Lyft have has made massive inroads into taxi industry.
Airbnb has taken a $1 billion bite out of the hotel sector.
Spotify, Pandora, and countless podcasts have caused led to a 20% decline in radio audience over the last few years.
Amazon has made a significant dent in Walmart, Target, and other top retailers’ market share.
Tech’s next big target though is probably bigger than all those and, thanks to one recent event, the transition going to happen even faster than most expect right now.
Revealed: Tech’s Next $79 Billion Target
Tech’s next big target is televisions.
That’s right. The TV you’ve known for decades is overdue for a massive shake-up.
Big changes are coming and it’s going to mean big bucks for the tech industry.
Now, I’m not talking about the rise of Netflix, HBO, Amazon, and other streaming services.
I’m talking about the core of the TV industry. The $79 billion per year that keeps TV going. Tech is coming for it’s cut.
TV is just too big not go after.
You see, despite the growth of the Internet, TV is still #1 in a two major categories -- time spent watching and advertiser spending.
The average American spends 5.5 hours watching TV per day. More than they spend on the internet and any other entertainment source.
As a result, TV is still the largest source for ad spending.
According to research firm Strategy Analytics, the advertising industry spent $187 billion in ad space in 2014.
Of that, digital advertising -- like Google ads -- totaled just $52.8 billion.
TV, meanwhile, attracted $79 billion in advertising.
TV might not get the buzz and headlines of social media and mobile advertising, it won’t post the 20%+ annual growth numbers, but it is still the dominant media in the country...and the tech industry has been watching and waiting.
To say the least, TV is ripe for innovation too.
The last major innovation in TV was the Digital Video Recorder (a.k.a. the DVR or TiVo).
The DVR has caused advertisers ever-growing headaches since its introduction in 1999.
No one watches commercials anymore. TV watchers could, do, and often prefer watching a TV show on delay so they can fast forward past the commercials.
Networks and cable providers failed to find a solution.
That’s where the tech sector comes in. They can and will do the same to TV.
Due to a recent, little-noticed change in regulations, they’ll be able to do just that.
Think Facebook is big? It has a $344 billion market cap as I write. However, it only does $26 billion this year in advertising.
How much value is there to be created from TV with nearly three times as much ad spending?
The answer: a heck of a lot.
When we get together next week we’ll look at why now -- after 20 or so years of waiting -- the tech industry will be able to take over TV and who the winners are set to be.