The way viewers are watching TV is rapidly evolving.
Every year, more viewers are ditching their expensive pay-TV subscriptions and opting instead for subscription video on-demand (SVOD) services like Netflix, Hulu, and Amazon Video, as well as premium services from HBO and Showtime. Rising demand for SVOD services, which allow viewers to stream the programming they want anywhere, has led many to question what the future of video entertainment looks like — and whether traditional pay-TV has a place.
In a new report from BI Intelligence, we examine how the growth of SVOD services is coming at the expense of the pay-TV industry. We analyze the state of the pay-TV industry and map out which demographics are more likely to stop buying traditional TV packages. We also discuss the user base, original content offerings, and subscription models of the major subscription streaming services available today, including Netflix, Hulu, and Amazon Video. Finally, we look at how traditional pay-TV companies and premium channels like HBO and Showtime are addressing the shift to digital viewing, as well as the implications of their response for advertisers.
Here are some of the key takeaways:
- Those abandoning pay-TV packages fall into three main groups: cord-nevers, cord-cutters, and cord-shavers. Whereas video streaming services have found favor with younger viewers in particular, an increasing portion of older subscribers also are leaving behind their pay-TV packages. Still, younger viewers watch four times as much video content online than older viewers.
- Netflix is the largest SVOD service and will continue to dominate the industry with an impressive original content lineup and aggressive expansion plans.
- Amazon is trying to compete with Netflix by investing significant resources in original content.
- Hulu is the third-largest SVOD service, but the only one to offer ad-supported membership tiers. Hulu has been the slowest to roll out original and exclusive content, but it has inked numerous deals in the past year to boost its content library.
- Pay-TV companies are responding to the rise of SVOD services by offering subscribers "skinny bundles" and their own streaming services.
- More
Not really surprised. Pay TV companies have been sticking it to the consumer for years, and when we complained, they thumbed their noses at us. Now they have serious competition and have painted themselves into a corner, and since the average consumer can't stand them, we have no loyalty to them.
ReplyDeleteComcast charges extra for an HD box plus an outrageous charge for cable tv on top of that. There on demand video is a rip off. I can get full HD programming and a superior picture through my ROKU box that has hundreds of choices of different channel options that are totally free and with only one commercial interruption during the programming. The only problem is, I am still stuck with Comcast for the internet and they charge me almost 70 dollars per month just for this!!! It's still cheaper than the 110 I was paying and I was only watch just a few channels of the junk they were charging me for. I can get my favorites commercial free like programs from the major networks. I can watch the whole series on Netflix, hulu, or Amazon. It's worth it. If only there were more competition for internet! Then I could cancel Comcast completely!
ReplyDeleteNo need for Directv or dishnetwork either!
In the end, if people are offered what they want to watch instead of being fed stuff they don't want to watch, pay TV will die unless it becomes more consumer oriented.
ReplyDeleteWe gave up cable and satellite some years ago because it was a big waste of our money. We barely watch local channels because of the advertising and lousy content.
I am tired of seeing all the prescription drug commercials!!! have to either leave the room or mute them out until my program comes back on. Side effects of these drugs are worse than the disease!!!!
ReplyDeleteI tried Rogaine to grow more hair and I got limp.
ReplyDeleteI tried Viagra to not be limp and my hair fell out.
I gave them both up, balding but better in so many ways.