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July 16, 2020

Streaming services subscription exceed pay tv for the first time


Online Streaming Services exceeds Pay TV in United States


 

Online Streaming Surpasses Pay TV In U.S. Households For The First Time.

More users in United States  are paying for online streaming and OTT services like Netflix, Amazon and Hulu as compared to pay TV or cable television. With more digital media and entertainment options on offer to consumers than ever before, new research from Deloitte has shown just how mainstream Netflix and co really are across the U.S. today. 

On average, American households subscribed to three paid streaming services in late 2018, and notably, more U.S. households subscribed to a video streaming service than traditional pay TV for the first time ever. Taking a closer look at the state of the shifting media landscape, 69% of households said they had a subscription to a streaming video service when the survey was conducted while 65% were paying for traditional TV. 41% were also subscribed to a music streaming service while 30% paid for access to a gaming service. 

In another ominous sign for cable TV, 88% of millennial households reported a video streaming subscription compared to just 51% for pay TV. One of the primary reasons consumers are cutting the cord and flocking to video streaming is access to shows and movies they can't get anywhere else. Deloitte also found that 57% of paid streaming video consumers subscribed to access original content and that figure is even higher among millennials at 71%.

Around 60 percent of U.S. based adults  currently have a  Netflix subscription and around 77 percent of all VoD users subscribe to Netflix. Netflix has 182.8 million subscribers globally , making it one of the world's largest entertainment services. It added 2.3 million in the United States and Canada in the first quarter of 2020 for a total of 69.9 million, and added 13.5 million internationally. The US, UK, Canada and Greece makes up for the the biggest content library of Netflix. 


Netflix.com started as a DVD rental service in 1998; an online rival to the then dominant Blockbuster Video. Founder Reed Hastings had claimed that he was spurred to found Netflix after being fined $40 by Blockbuster for the late return of Apollo 13, though he later revealed the story was a fiction intended to help foster a creation myth. 

Netflix's  The Office streamed for 52 million minutes in 2018.Bird Box most-viewed original film in 2019, (80 million views) Stranger Things was the most viewed original series in 2019 (64 million views)