Speaker 1: My name is Tristan Veale and I work for FutureSource Consulting. We're a specialist research consultancy based in the UK with a 30 year history of tracking the entertainment industry from glass to glass. So everything from the production and capture equipment all the way through to the end user devices. In today's presentation I'm going to talk through the changing TV and accessories landscape before moving on to talk about the fragmenting media landscape and how people are consuming video on different devices and in different ways. So starting with the TV and accessories landscape then. Overall it's been about 230 million shipments worldwide of TVs in 2019. Now this has been relatively stable. Manufacturers have been looking at this market not moving significantly for a number of years. In fact if we look at what the expected growth of shipments is annually between 2018 and 2024 we see that it's less than a percentage increase. Now this has been driven by the developing markets that have been growing in affluence and therefore buying more TVs and conversely we've seen within the developed markets this beginning to slow down. People are not buying as many TVs as they had in previous years. However 2020 has been a bit of an exceptional year. Not only have we seen this trend reversed but overall we've actually seen shipments relatively stable so we're expecting that similar sort of number around 230 million shipped. However within the developed markets there's been purchases brought forward. So people that were planning on buying a TV over the next two to three years have been buying them early faced with so much leisure time spent at home. But it's not just the TVs themselves that they've been purchasing. It's also been the accessories, the soundbars, the hi-fis, the surround sound systems in order to really improve that video viewing experience. And the reason for this is because they've been repurposing disposable income that would have otherwise been spent on other luxury goods, the likes of holidays and the likes of other major expenditures that have been reined back. Within the video consumption landscape things are beginning to fragment and beginning to change. The main way that consumers have to influence content producers and tell them what they want to watch is by voting with their money or with their time. So let's have a look at how consumers spend their money on video entertainment. Well the overwhelming spend direction is on pay TV. In 2019 it accounted for 75% of consumer spend, equivalent to 184 billion US dollars. Now the US itself was actually a main driver of this. Half of this pay TV revenue was from the US and that's as a result of not just strong pay TV penetration, but also with a very high average monthly cost. Now there are not just the US that's driving this, there's a number of other markets too. India and China have been key growth markets as they're rising affluence. And even when we look at some of the more established and developed markets such as Japan, the UK, Germany, while we do see lower pay TV penetration, the spend per month is quite high and this is also driving global spend. But we are looking at these developing nations who are increasing their pay TV spend despite the plethora of other services and other ways of consuming content that has been helping to stabilise this market. SVOD then has been the most hotly talked about topic in years. We actually looked at the 2019 market and saw that $41 billion was spent on SVOD subscriptions. Half of that was via Netflix. And then the transactional home video market, $19.5 billion. That contains the Blu-ray sales, that contains DVD sales, also from the digital side, rental or purchase of a film or a TV show to watch either on a rental basis or to keep it forever. Now this has been a much smaller market and slightly declining. However, it was hoped that this was going to be starting to reinvigorate itself with some of the new models that are coming through.