Lions Gate Entertainment, for example, joined forces with Netflix, Hulu, and YouTube to create original series. Traditional studios have begun to invest in online productions, allowing viewers to access a wealth of excellent programming when and where they want it. Increasing Availability of High-Quality Online Content.Streaming video has advanced to the point that it is now viewed as a direct threat to traditional TV. By 2017, the number of tablets and Internet-connected, or smart, TV sets will be nearly 1 billion worldwide. For users who are on the go, improvements in wireless connectivity have enabled greater access to digital content, and devices that can access mobile video have saturated the market. Europe is following quickly with 74% projected by 2017. In North America, 85% of households are today ready for streaming, and projections say that 96% will be ready by 2017.

The robust fixed-broadband infrastructure that is needed to meet the demand for online video is now available in most countries. Three overarching forces stand at the forefront: It is instructive to understand the enablers of the new ecosystem before considering the future. However, the new online ecosystem is threatening the roles and relationships among key companies in the ecosystem that up to this point have been consistent. Until recently, changes in industry dynamics have been evolutionary rather than revolutionary. (See Exhibit 1.) Industry giants, such as Twenty-First Century Fox, Time Warner, Liberty Global, Sky, Dish Network, CBS, Viacom and, of course, Disney, all hit near-52-week lows, raising fundamental questions: Which companies will emerge as victors in the digital age? Which business models will prevail? Will current industry leaders retain their winning positions, or will they crash and burn? In August 2015, The Walt Disney Company reported lower than expected earnings-the result, in part, of ESPN subscription losses-fanning widespread fears that viewers are opting for less pricey cable bundles or dropping cable altogether. With so many across the industry jockeying for position, the market for media stocks has become extremely volatile. Content producers are scrambling to develop hit shows that can help networks and digital aggregators differentiate themselves and capitalize on evolving consumer preferences. Cable and satellite companies, too, have seen their traditional bundles come under attack from a slew of streaming Г la carte offerings. Networks, with their long legacy of linear programming (that is, airing news, sports, and entertainment at set times), are fighting to stay relevant. Online video has been spreading like wildfire, empowering consumers to watch what they want when they want it, sometimes cutting TV out of the equation altogether. The global television industry is in the midst of a digital revolution. Technology, Media, and Telecommunications.

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