Streaming services have significantly impacted the traditional TV and broadcasting industry. These services have impacted the revenues, advertisements, and most importantly the habits of viewers. Many factors have led to this growth of streaming services and the decline of TV
Over the decades, cable television has been the major source of streaming for people around the world. It is still alive as a lot of people still subscribe to Spectrum TV plans or the service of some other provider. But the impact and the changes streaming services have brought are clearly visible. Read on to see how streaming services have impacted traditional TV
Changing Viewer Habits
Many factors made streaming services a more suitable alternative to traditional television resulting in a major drop in the profits of cable. For starters, you have to be in front of a TV with a cable connection to watch your favorite shows. But cord-cutting through streaming services allows customers to watch from anywhere they want. All they need is an internet connection. Even that is not necessary if customers have their favorite shows in their downloads. The same cannot be said about traditional cable.
Another major difference between cable and streaming services is the duration of ads. Not too long ago, Netflix and other platforms did not have ads on their base plans. Spending a couple of extra dollars can still help you avoid them. But even the ad-supported content on YouTube does not have the ad duration compared to traditional. Too many ads disrupt the content streaming experience. The difference is clearer when the viewers have alternatives with fewer ads.
Generally, younger people prefer to stream without ads making streaming services their first choice. Whereas people who have grown up around traditional television are more adjusted to it. However, even people of older age groups are showing a significant shift in their sources of consuming content.
Advertisers Switching to Digital
2016 was the year when the multichannel revenue peaked at a whopping $117 billion. Ever since these numbers have been dropping. One of the major reasons for the drop is advertisers losing interest in advertisements on cable. With decreasing viewership, many adverts during the ad space do not get the type of attention advertisers need.
Instead of cable, businesses are allocating their advertisement budgets toward digital. Search engine ads, social media advertisements, and video ads on YouTube and video streaming platforms are becoming major mediums of marketing. Yet, cable television still holds a significant share of advertisements. Otherwise, businesses wouldn’t be paying millions of dollars for ad space during the Super Bowl. But the spending is not comparable to what it used to be in the not-so-distant past.
Networks Launching Their Streaming Platforms
Because of the increasing influence of streaming platforms on cable television, many cable providers and networks have embraced some significant changes. Major networks have adopted a similar approach to Netflix by launching their platforms with exclusive shows. HBO Max, Peacock, and Disney+ are some prime examples of this strategy. Other popular networks may take a similar approach in the future as well.
Apart from singular networks, even cable providers have started to take a hybrid approach. Customers can watch their choice of channels straight from their mobile devices and stream from a variety of cable channels. Popular cable service providers add such services to their traditional cable plans. Also, some use a similar approach to offer a more limited channel lineup at a much lower cost compared to general plans. A good thing about these apps is the middle ground they offer between streaming services and cable
Movies Losing Their Exclusiveness
After the pandemic, cinemas and theaters have started to reopen like before. Theaters are not directly linked to traditional TV but are a part of the culture when viewed from a broader perspective. New releases are attracting the attention of movie-goers, keeping the experience of watching a film in a theater alive. During the pandemic, streaming platforms were keeping the movies alive and serving as the only platform where you could watch specific titles. However, with cinemas opening again, films are returning to where they belong. But now networks often rush to launch these films on their streaming platform.
This practice leads to a shorter lifetime of a film in theaters. So, more viewers can wait for a film to be available on the streaming platform to watch it instead of going to a theater. Therefore, it is now creating a conflict between exclusive production houses and theaters.
So, these are some areas where streaming services have impacted traditional television.