Television viewing in the United States has been rapidly changing during the past several years, largely due to the proliferation of smartphones and tablets that allow consumers to watch videos from virtually anywhere at any time on any device.
In the past, cable dominated the television market. A few years later, satellite was introduced and the amount of content able to be accessed from family homes exploded in volume. Today, on-demand, streaming and subscription services are gaining momentum, according to a recent study by Harris Interactive.
The survey polled more than 2,300 American adults and found that streaming services are well on their way to reaching the same penetration numbers as traditional live television, as more than half of survey respondents said they have watched a streaming video.
Despite the fact that nine out of 10 Americans still say their TV set, sans streaming, is the No. 1 way they watch television shows, streaming is quickly catching up. In fact, roughly a third of people in the United States said they have the ability to stream video via their TVs, while about 20 percent said streaming services on multiple devices is their primary method for watching television.
Subscription streaming services gaining speed
While there are many video-streaming offerings available to American consumers, subscription services, in particular, are highly appreciated because of their small recurring payments. This was highlighted in a separate study by Parks Associates, which found the traditional cable TV market share will fall to only 52 percent in 2017.
“The era of huge subscriber gains in the U.S. pay-TV market is over,” said Jim O’Neill, research analyst at Parks Associates.
“People are absolutely using their Netflix service,” said Dave Caputo, CEO of Sandvine, according to Bloomberg. “I don’t know whose library is better or bigger, but it’s very clear that people use Netflix a lot more.”
If video streaming services want to remain on pace with Netflix, decision-makers should consider launching new subscription business models, and implementing an innovative subscription management platform to support these models. In doing so, organizations can potentially gain a competitive advantage over rival companies, or at least stay on pace with the accelerating market.