The pay-TV exodus is ramping up as Netflix and other streaming services pump out high-quality original shows

« Back

The pay-TV exodus is ramping up as Netflix and other streaming services pump out high-quality original shows 07.25.2018 11:30

arrested development

Netflix's "Arrested Development."

 Netflix

Business Insider 

John Lynch

 

  • TV cord-cutting will outpace projections and increase an estimated 32.8% in 2018, according to new analysis from Emarketer.
  • The firm projects that the total number of cord-cutters will jump from 24.9 million users in 2017 up to 33 million by the end of this year.
  • This hike in cord-cutting comes despite an increasing number of pay-TV providers forming partnerships with over-the-top (OTT) services like Netflix in an attempt to retain customers.

The percentage of people ditching their traditional pay-TV packages is expected to skyrocket this year, according to a new study from Emarketer.

The firm is projecting a 32.8% increase in 2018 for the overall number of cord-cutters: those who cancel their paid TV subscription with a cable, satellite, or telecommunications company.

This increase — far outpacing the firm's previous projection (from July 2017) of a 22% increase for this year — would bring the total estimated cord-cutters from 24.9 million users in 2017 up to 33 million by the end of 2018.

cord-cutting emarketerEMarketer

The significant hike in cord-cutting comes despite a swath of pay-TV providers forming partnerships with over-the-top (OTT) services like Netflix in an attempt to retain customers.

"Most of the major traditional TV providers [Charter, Comcast, Dish, etc.] now have some way to integrate with Netflix," Emarketer senior forecasting analyst Christopher Bendtsen said. "These partnerships are still in the early stages, so we don't foresee them having a significant impact reducing churn this year. With more pay TV and OTT partnerships expected in the future, combined with other strategies, providers could eventually slow — but not stop — the losses."

It's important to note that EMarketer's figure for cord-cutters does not include those customers who cancel a traditional pay-TV subscription only to subscribe to a newer subscription-based digital service with a cable or satellite company, such as DirecTV NOW or Comcast's Xfinity.

Still, overall, Emarketer estimates that 186.7 million adults in the US will watch traditional pay TV (cable, satellite, or telco) in 2018, which is down 3.8% over last year — and slightly higher than the 3.4% drop in 2017.

The firm also notes that streaming platforms like Netflix and YouTube are meanwhile experiencing rapid growth fueled largely by demand for their original programming.

"The main factor fueling growth of on-demand streaming platforms is their original content," Emarketer principal analyst Paul Verna said. "Consumers increasingly choose services on the strength of the programming they offer, and the platforms are stepping up with billions in spending on premium shows."

Netflix, which is increasingly dominating the field of original programming in the eyes of consumers, will have spent around $8 billion on content in an effort to have over 1,000 original shows and movies on its service by the end of the year.

The streaming service's spending is also paying increasing dividends in the realm of accolades, as Netflix broke a 17-year streak from HBO this year to earn the most Emmy nominations of any network— just five years after the company notched its first nominations in 2013.

5b47b07b69e6c931008b48be 960 720

Jenny Chang/Business Insider


- Это интересно
How much does consulting cost?
News
02.10.18
Venture and growth investors are doing a lot to speed up the rise of these worker-bots. So far this year, they’ve poured hundreds of millions into developers of robotic process automation technology, the term to describe software used for performing a series of tasks previously carried out by humans.
02.10.18

What if blockchain turned out to be just what emerging economies were after?

 

02.10.18

While Clinton certainly did not appear to be a Shingy-esque blockchain evangelist onstage, he delivered a targeted amount of enthusiasm about new technologies like blockchain and artificial intelligence in enhancing accessibility and shaping the country’s economic future.

02.10.18
It might be the only way we can break Facebook’s hold on our lives, it could cement Apple’s reputation as a privacy-minded service provider, and more importantly, it wouldn’t be that hard to get people to use it.
02.10.18
Instagram’s co-founders announced that Adam Mosseri, the platform’s vice president of product, is now in charge. Mosseri will oversee all functions of the business and recruit a new executive team, Kevin Systrom and Mike Krieger said in a statement. The co-founders announced their departure last week — more than six years after Facebook purchased the company for $1 billion. “We remain excited for the future of Instagram in the coming years as we transition from being leaders at Instagram to being just two users in a billion,” said Systrom and Krieger.
Address:
1288 East 19th Street Apt.
Suite # 7B Brooklyn NY 11230