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Let’s see some numbers

In 2016, there were 95.7 million pay TV subscribers in the U.S. and the source projected that the figure would fall to 90.7 million in 2022.


Where are all the subscribers heading to?

As Simon Murray, Principal Analyst at Digital TV Research, explained: Some analog cable subscribers will give up paying for TV services rather than convert to an often more expensive digital platform.” He continued: “Cord-cutting is also a factor. It has been somewhat intensified by the traditional pay TV operators starting their own OTT platforms: satellite TV platform Dish provides Sling TV, and DirecTV Now has recently started. Other distractions include Hulu, HBO Now and, of course, Netflix and Amazon Prime Video.” Cable has been losing subscribers since 2011. This is partly because not all of the 18 million analog cable subscribers at end-2010 will convert to digital cable TV platforms – or any digital pay TV platform for that matter.

The facts!

  • Consumers are starting to cut the cord at the fastest pace than ever;
  • Pay TV companies can no longer downplay the threat new streaming services pose to their business models;
  • Even when pay TV’s digital skinny bundles are included, growth is still flat;
  • The new OTT offerings are not growing subscribers fast enough to offset the drop-off in traditional customers;
  • The number of losses is even larger when factoring in the cord-nevers;
  • Increased competition from digital services like Netflix and Hulu as well as new hardware to access content are shifting consumers’ attention away from live TV programming
  • US adults are watching traditional TV on average 18 minutes fewer per day versus two years ago
  • Viewing of original digital video content is on the rise – half of US TV households now subscribe to SVOD services, like Netflix, Amazon, and Hulu;.
  • Legacy TV companies are recognizing the shifts and beginning to pivot their business models to keep pace with the changes. They are launching branded apps and sites to move their programming beyond the TV glass, distributing on social platforms to reach massive, young audiences, and forming partnerships with digital media brands to create new content;
  • Programmatic TV ad buying represented just 4% (or $2.5 billion) of US TV ad budgets in 2015 but is expected to grow to 17% ($10 billion) by 2019. Meanwhile, networks are also developing branded TV content, similar to publishers’ push into sponsored content.

(Source: Business Insider)

Do not worry; television is not dying!

Television is not dying as much as it’s evolving: extending beyond the traditional television screen and broadening to include programming from new sources accessed in new ways. More consumers are shifting their media time away fromliveTV, while opting for services that allow them to watch what they want, when they want. Indeed, we see a migration towards original digital videos such as YouTube Originals, SVOD services such as Netflix, and live streaming on social platforms.  (Source: Business Insider)

It is crucial for all the US operators to understand facts mentioned above if they want to become Viewers’ First Choice. Beenius Team will present its Interactive TV Platform at the Nab Show New York, the largest media, entertainment, and technology convention on the East Coast in October 2017. Contact us if you are interested in demo presentations of our platform that will help you become the leader and not only the follower in your region.


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