Netflix was responsible for more than 50% drop in the viewership time of US TV viewing last year.
Ever since Netflix Inc. began to offer online video content services in 2007, it imposed great threats to the TV industry where traditional cable channels and networks were afraid to lose market share to the new streaming behemoth. It came in with an objective to revolutionize and change the perspective of how viewers watch TV. As the time passed by, it bolstered its market position and status which resulted in greatly affecting the business of TV networks.
As it is constantly growing and expanding in domestic and international regions, it is leaving a huge mark on the businesses of TV networks. The streaming giant does not intend to cause a fatal blow to the industry but its progress is cutting into traditional TV ratings.
Netflix was responsible for more than half of the overall 3% drop in the time duration of TV viewing of the US people last year. It has been making a huge impact on the industry. The TV viewing time of A+E Networks fell down by 15% whereas Viacom’s declined by 13%. NBC Universal and Disney both reported a 5% drop in their TV viewing time last year.
An analyst at MoffetNathanson, Michael Nathanson, conducted a new study that came up with surprising results regarding how the streaming giant is impacting the TV business and industry. His recent study showed an estimate of Netflix subscribers in the United States who streamed nearly 29 billion hours of video in 2015. Mr. Nathanson wrote, “Currently, Netflix is a source of industry pain, but not necessarily a cause of industry death.”
Michael Nathanson made a prediction that the total streaming hours on the streaming service provider’s platform of TV viewing (in percentage) will continue to rise and it will jump by 14% by 2020. It was already a threat and now the executives of media companies and conglomerates are worried.
Many TV networks are suffering from Netflix’s dominance in the market but not all are affected. Other video streaming services such as Amazon Prime Video and Hulu are also performing well. Sources suggest that the total viewing of AMC Networks, Discovery Communications, Scripps Networks Interactive, and Time Warner increased in 2015.
Netflix currently has 74.76 million streaming subscribers globally out of which nearly 45 million subscribers are from the United States. It is surely killing TV and this is worrying the business owners. It recently took a step forward in producing original content to take on TV networks and so far, it is proving out to be an excellent move.