Technology is set to have a major impact on this sector. Telecom operators are set to benefit from increased data consumption as 5G is deployed, over the top (OTT) video increases and VR is adopted. The rise of AI/VR-driven personalized platforms may lead to the rise of data-intensive applications, driving robust data growth. Developing and monetizing a smart pipeline (?) is therefore likely to be a focus. Telecom operators are also likely to partner on machine to machine (MTM) and IoT applications such as smart homes and autonomous cars.
Company specific thoughts:
Canada is set to be a global leader in mobile 5G. We expect BCE and TELUS to deploy an extensive fiber-to-the-home (FTTH) footprint, alongside mobile 5G deployments by the cable companies(?). This will strengthen Canada’s global position across new applications in areas such as machine to machine (M2M), IoT, VR and AI.
However, traditional media companies such as Corus, Torstar, Transcontinental and Yellow are likely to struggle as advertising and marketing services spend shifts away from traditional media. And mass VR adoption may place downward pressure on content demand from content companies such as DHX Media, Entertainment One and Corus. Thomson Reuters’ data-rich legal, tax and accounting businesses are ripe for AI – but significant investment will be needed to remain competitive and sustain pricing power.
Media & Telecoms: Up close
The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.