Wednesday, March 16th, 2016

Streaming television on the rise

Jonathan Blum

Throughout the years, television has been one of the main sources of information and entertainment around the world, capable of drawing attention and gathering millions of people around a political situation, sporting event or simply getting family and friends together to watch their favorite shows.

Close to 90 years have gone by since Philo Farnsworth, recognized as the inventor of television, materialized his idea and gave shape to what many refer to as “the magic box”.

Nevertheless, as a result of new technologies, the way in which we have accessed our contents of interest has been changing quickly.

The times when entire families would gather around the TV to watch shows at specific times are now a thing of the past. Today, anyone can choose what they want to watch and when they want to watch it, through multimedia networks such as YouTube or through the television streaming service. Only mega-events such as the Super Bowl and Miss Venezuela, just to name a couple, continue to gather families around the traditional TV screen.

Video on demand is a technology born over 10 years ago, and today it is taking more and more space from traditional TV:

–    In the United States, traditional TV lost 12% of its audience over the past year.

–    In Great Britain, the average time per day that a viewer spends in front of the television has dropped by 9 minutes.

–     According to the Local Watch study from Nielsen, the percentage of homes with a subscription to Netflix, Hulu or Amazon Prime is 48%.

–     The video on demand market (VOD) in the United States is distributed like this: Netflix 48%, Amazon Prime 19% and Hulu Plus with 10%.

–     Netflix reached 75 million subscribers  around the world.

Streaming platforms are taking over the world thanks to TV viewers’ changing consumer habits, forcing cable TV operators to radically change their business and content strategies to attract audiences migrating from other platforms.

Welcome to the screens revolution!