It’s no secret that the way we enjoy our favorite shows and movies has drastically changed.
Traditional television access is taking a backseat to the rise of streaming services, and people are cutting the cord like never before.
In this article, we’re going to dive into the exciting findings of the Convergence Report and explore what cord-cutting means for the future of television.
Let’s dive into it…
The Growing Shift: Cord Cutting Trend and Streaming Expansion
The numbers speak for themselves: it is projected that up to 72 percent of all US households will become cord-cutters by 2025.
This surpasses earlier expectations.
Traditional TV access, once the norm, is rapidly becoming a niche product in the evolving landscape of entertainment.
Interestingly, this shift encompasses both traditional TV providers and virtual multichannel video programming distributors (vMVPDs).
Here’s our detailed analysis of cord cutting trend, you may want to check out:
Death of Cable TV: Why Cable and Satellite Industry Are Losing Millions of Subscribers?
OTT Providers and Revenue Growth
To understand this, they analyzed over 80 over-the-top (OTT) providers.
Major players such as Netflix, Disney, Hulu, Warner Bros Discovery, and Amazon were scrutinized to assess their impact on the industry.
In 2022, US OTT access revenue experienced a remarkable 26 percent growth, reaching a staggering $49.6 billion.
Looking ahead, the report forecasts a continued growth rate of 21 percent in 2023. However, it also predicts a significant slowdown, with a growth rate of only 13 percent anticipated by 2025.
While the streaming industry will continue to expand, the pace of growth is expected to stabilize in the coming years.
The Decline of Traditional TV Subscribers
Traditional TV networks are feeling the heat massively.
The report reveals, cable networks lost a whopping 11 percent of subscribers last year alone. And get this: around 53 percent of all US households don’t have access to cable, satellite, or telco TV providers. That’s a lot of people saying “no thanks” to traditional TV.
Additionally, by the end of 2025, the number of households without traditional TV access will rise to 75 percent.
This means that streaming services are gaining more traction and becoming increasingly popular among consumers, while traditional TV subscriptions are losing their significance.
The Changing Landscape: Cord Cutters and Alternative Entertainment
While cord-cutting is on the rise, it does not necessarily mean that every cord-cutter is immediately seeking alternative entertainment sources.
Some individuals may simply be purging programming from their systems without subscribing to any streaming services.
Nonetheless, subscription numbers for almost every streaming platform continue to soar each year.
Adaptation and Challenges for Traditional TV Networks
To remain competitive, they must adapt to the changing trends and preferences of viewers.
This may involve reevaluating their business models, exploring partnerships with streaming services, or developing their own streaming platforms.
Thus, they can adapt and thrive in this streaming era.
Conclusion
The Convergence Report leaves no room for doubt.
Cord cutting and the rise of streaming services are reshaping the future of television.
With 72 percent of US households projected to be cord-cutters by 2025, traditional TV networks need to adapt or get left behind. Embracing streaming, leveraging data and analytics, and exploring new revenue streams are essential for their survival
Abdur Rahman is a seasoned journalist who covers all things related to TV and streaming. As of May 2, 2023, Abdur is writing for Homespoiler.com. More about him