In the past year both network and
cable viewership has been in decline.
One reason can be attributed to streaming services as they are offering
original shows that are more cutting edge than traditional television. In fact, Netflix one of the largest steaming
service has been steadily responsible for cutting into the television ratings. According to Nielsen
ratings, Netflix customers streamed 29 billion hours of video last year. This represents 6% of total American
television viewership and is up by 3% from the previous year.
Traditional broadcast networks are
taking the largest hit as the popularity of streaming continues to rise. In
fact, when comparing viewership of households that have Netflix, network
viewing declined by approximately 30%.
Netflix also outperformed smaller cable programs such as AMC and A+E. In the United States alone, there are 44
million subscribers and viewers are expected to rise. It is predicted that
Netflix will actually represent 14% of the overall television viewership in the
next 3 years.
This article shows the impact of
technology innovation in regards to the current television industry. Cable television was a revolution when
introduced to households in the 1980’s and it altered the way we as consumers viewed
television provided more options of choice. Yet, streaming is the latest
innovation that has allowed not only the consumer to what they watch but when
they watch it. It will be interesting to view the future as
continued innovation occurs with streaming.
I believe Netflix will continue to grow and change the television industry
as we currently know it. Why do you
think and what are other reasons consumers are attracted to streaming rather
than traditional television?
Huddleston
Jr., Tom. “Here’s How Much Netflix is
Digging Into Network TV’s Audience”
Fortune.com. Time Inc., 3 Mar 2016.
I recently read on article on Time that addressed this exact issue, and found it very interesting as I live in a house that decided not to pay for cable this year, and instead use streaming services. To answer your question, I believe this transition is taking place for many reasons, the most influential being convenience. Personally, at home watching cable, I always find myself flipping through channels for hours, rarely finding something I want to watch. With streaming services, this problem is avoided as you can choose anything you want to watch, when you want to watch it, or you can even choose to watch live TV on certain channels, if there is a show or a sporting event you want to watch. In my opinion, cable services will be completely gone within the next few years, and streaming services such as Netflix will continue to dominate the market.
ReplyDeleteI found this article very relatable:
http://time.com/4875549/cable-cord-cutting-streaming-television/
Stream may or may not totally replace cable, but the trend show that we are getting there. The basic reason is mentioned already. I am strengthen again that ,like digital camera replacing film cameras, new products have take away the market because the new products release the pain of the old one.
ReplyDeleteWilliam,
ReplyDeleteFor my sake, I hope both streaming and cable are to stay. There are some shows that I love to binge and watch all day, while there are others that I prefer to watch real time so I do not hear of any spoilers. Another big thing is sports, I will refuse to record or watched a streamed game since it is so much different.
However, Netflix and other streaming services are on the rise and this may be the path that all TV is used. But if its cheaper, Ill take it!