The global social TV market is already a multi-billion dollar industry, with TV giants betting big money on second screen viewing, but the market is set for double-digit growth in the the next five years, according to a report by market research firm MarketsandMarkets. The research firm expects the market to grow from $151.14 billion this year, to $256.44 billion by 2017 — an estimated CAGR of 11.2 percent from 2012 to 2017.
“The future for the television is social through integration of social interaction on the television. Broadcasters are developing and enriching social TV integration; they are targeting the tune-in customer, engagement and their loyalty to boost the rating and they are also discovering the social TV challenge,” the report notes.
Currently Europe grabs the largest slice of social TV market revenue. MarketsandMarkets calculates the region will take $55.48 billion this year, and expects Europe’s portion to grow to $77.74 billion by 2017 — at a CAGR of 7 percent, slightly below the overall market growth rate.
As well as social TV startups attracting big investment from established media and tech industry players, the space is seeing lots of tie-ups between broadcasters and social networking players such as Twitter and Facebook.
“There exists a diversity of players in the Social TV ecosystem, as the industry is open to experiments and is witnessing many a tie-ups between broadcasters and social networking companies. While some broadcasters are amalgamating Social TV within their own platforms; there are many, who are integrating Twitter into their Social TV platforms for enhanced custom experience and participation. Industry players such as BBC and CNN, on the other hand have signed deals with social networking players such as Facebook, as social networking companies are aggressively trying to venture into this space,” the report notes.
“Social is truly emerging as a coalition of television and social media, wherein newer formats are being developed to enhance viewer engagement and encourage paid transactions. Many media and tech companies such as Hearst, Time Warner, BSkyB, and Google are backing several Social TV startups, with huge investments,” it adds.
[Image: Grzegorz Chorus]