This iPhone/TV set comparison came from Malcolm CasSelle, senior VP and general manager, digital media of SeaChange International/NewCoin, speaking at the TVB Forward Conference.
In a multitasking world, smartphones can be found regularly sitting right next to the TV viewer -- in their pockets or hands.
Revenue models for the two businesses show a different story. For the big TV screen, you still have some $80 billion in overall TV ad spending, around 42% of total U.S. media spend, according to eMarketer.
Smartphones, the entry tool for the mobile world, will bring in $28.7 billion in ad spend for 2015 -- around 15% of total media spend, according to eMarketer.
Consumer costs for electronic devices and the business costs in terms of advertising revenues have a loose correlation. Ruminating over the expense of an iPhone is just the start -- especially when it comes to growing costs for apps in the future.
And then there are other consumer services to consider: broadband, traditional pay TV provider packages, mobile, landline, and new OTT platforms.
Does it matter what consumers pay? How much should that factor into their entertainment/media engagement, and how should marketers respond?
Prices for iPhones keeps climbing. But what happens when we start to pay $1,200 for the iPhone 10s, say in 2020? We’ll be happy that 16K TV 70 inch sets might only go for $900.