Is Online TV Killing Traditional TV?
Online television and video services are forecast to generate $42 billion dollars in global revenues by 2020. Subscription-video-on-demand (SVOD) services are playing a significant part in this as consumers now spend a minimum of six hours every week watching streamed television shows and movies on demand.
According to Telegraph, a survey of so-called millennials’ entertainment habits found that even when the under-35s generation move into their own homes and have families they do not revert to paying for TV packages and watching linear television. 82% of 60 to 69 year olds still watch traditional television daily, but it is much less for millennials at 60%. In fact, more than three in five 25 to 34 year olds say that they cannot find content to watch on traditional television.
This has led to the ‘cord cutting’ phenomenon where consumers are getting rid of their cable services and switching to SVOD services with Netflix being the most popular option. Online content giant YouTube has also bitten back the presence of traditional TV and Online Tv. Last year, it advised UK marketers to shift their adspend away from TV to YouTube, saying they needed to move 24% of their budgets over if they wanted to reach the more responsive (young, affluent) audiences.
To find out more about the incredible rise of SVOD services and where traditional TV is by comparison, see this infographic produced by Frame Your TV.
Drew Burstein is the Owner and Director of a company called Frame Your TV. He regularly writes about interesting topics in relation to the television, movie and digital industries.