The Digital Streaming Industry Just Hit a Major Milestone

At this point, we have reached a crossroads when it comes to home entertainment.

The internet video streaming industry has been on fire for a long time now. While TV services used to be completely ubiquitous in the US, that is now no longer the case. Now, more households are subscribed to a digital streaming service than to a traditional pay TV subscription. The trend that lead to the current situation is only expected to continue.

For the first time, more households have demonstrated a preference for digital streaming over pay TV. A new survey by Deloitte found that only 65% of respondents currently pay for a TV subscription. At the same time, 69% are currently subscribed to at least one digital streaming service. The digital streaming industry would certainly be glad to hear that the average digital streaming consumer subscribes to three streaming services. Despite this, many of them still can’t seem to find enough to watch! 47% of respondents said they need several subscriptions to have access to enough streamed content.

Digital streaming services are here to stay. Furthermore, as a young industry, there is a lot of room for growth and improvement. 57% of respondents to the Deloitte study noticed that their favorite shows have disappeared. This is likely because series that kick it off well on services like Netflix often get their own streaming service. Even TV networks are launching streaming services, perhaps signalling a smoother transition in the home entertainment industry, as opposed to a hostile takeover by a younger and stronger streaming industry. Blockbuster might disagree, but the TV networks will likely be alright if they can play their cards right and see what’s downstream.

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5 years ago