technological change and the communications marketplace ... · the changing video marketplace 1992...
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Technological Change and the Communications Marketplace: Challenges for State Tax Policy
National Conference of State Legislators
Executive Committee Task Force on State and Local Taxation
August 11, 2013
© 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
Deborah Bierbaum, Executive Director External Tax Policy, AT&T Voice: 908-234-8323 Email: [email protected]
Rick Cimerman, Vice President External & State Affairs, NCTA Voice: 202.222.2325 Email: [email protected]
The Online World Stats for 2012
© 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 2
175 Million Tweets/day
2.4 Billion Internet Users Worldwide 1 Billion Facebook
Users 4 Billion Hours Video Playbacks on YouTube/day
4.3 Billion Email Accounts
634 Million Websites
187 Million LinkedIn Users
144 Billion Emails Sent/day
http://royal.pingdom.com/2013/01/16/internet-2012-in-numbers/ http://www.itu.int/ITU-D/ict/material/FactsFigures2010.pdf
58 photos uploaded/ second to Instagram
5 Billion Mobile Broadband Subscriptions
“Cutting the Cord” – Wireless Substitution
More than one-third of American homes (35.8%) had only wireless telephones during the first half of 2012—an increase of 1.8 percentage points since the second half of 2011 . Preliminary results January—June 2012 National Health Interview Survey (NHIS) .
© 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 3
Mobile Video Will Generate Over 66 Percent of Mobile Data Traffic by 2017
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Cutting the TV Cord – A Growing Trend
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Source: Neilsen “Zero-TV Survey”, 4Q2012. Download full report at: http://www.nielsen.com/us/en/newswire/2013/zero-tv-doesnt-mean-zero-video.html
The number of U.S. households that use Broadband for TV viewing in addition to Over-the-Air TV has risen from 2,010,000 in 2007 to 5,010,000 in 2013, now representing slightly less than 5% of total households.
67% of these homes get their content through non-traditional
services or devices
48% of these homes watch TV content through subscription
services. (Hulu Plus, Netflix, etc.)
They stream video twice as much as the general population and
watch half as much TV.
Almost 50% of these homes are under the age of 35
The Changing Video Marketplace
1992 THEN & NOW 2012
98% CABLE % OF ALL MVPD HOMES
55%
53% VERTICAL INTEGRATION (% OF NATIONAL CABLE NETS THAT ARE PART OWNED
BY CABLE OPS)
14%
101 TOTAL CABLE CHANNELS OVER 900
NONE TOP 10 MVPDS THAT ARE NOT CABLE COMPANIES
DirectTV #2 DISH #3
Verizon FiOS #5 AT&T U-Verse #6
61% %OF ALL TV HOUSEHOLDS THAT ARE PAY TV HHS
86%
39% % OF ALL TV HOUSEHODS OVER-THE-AIR 10%
© 2012 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 6
Source: FCC 15th Report
What the Internet Does
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Provides a value-added platform to deliver content and services at lower cost to consumers.
Distributed Data
Distributed Text
• Instant messaging
• Text messaging
• E-collaboration/ e-work
• Blogs
Distributed Content: www
Distributed Voice Distributed Video
• Music
• Software distribution
• Retail Sales
• Public information
• Games
• Books
• VoIP phone calling
• Chat
• Audio conferencing
• Answering services
• Record and send
• Distance learning
• Medical consultation
• Remote monitoring
• Video conferencing
• Video distribution
Skype
TeleGeography estimates that cross-border Skype-to-Skype calls (44 percent in 2012, to 167 billion minutes.
TeleGeography estimates that Skype added 51 billion minutes of international traffic in 2012 – more than twice as much as all the telephone companies in the world, combined.
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Source: http://www.telegeography.com/page_attachments/products/website/research-services/telegeography-report-database/0003/6770/TG_executive_summary.pdf
Increase in International Phone and Skype Traffic, 2005-2012
In August of 2009, Hulu had More Viewers than Time Warner Cable
Pascal-Emmanuel Gobry
October 06, 2011
Hulu Plus is very successful, writes Hulu CEO Jason Kilar. It has now 1 million paying subscribers, and Kilar believes it will soon bring in half of Hulu's revenue.
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Throughout 2011, Hulu increased content on the free Hulu site by 40 percent and increased content on the subscription service Hulu Plus by 105 percent compared with what was available in 2010. For a
description of Hulu’s history, see FCC 15th Report.
Source: http://articles.businessinsider.com/2009-08-28/tech/30029893_1_hulu-video-platform-time-warner-cable