Netflix, Amazon Prime & Other Streaming Services Beat Cable, DTH Globally: First Time Ever!
However, revenues generated by Cable and DTH sector is increasing.
The writing was on the wall, since long. But we were not sure when this will happen.
Globally, a paradigm shift has happened regarding how content is being consumed, and the biggest casualty of this change is the cable and DTH industry.
How will it affect our world?
Online Streaming Services Beat Global Cable Industry
For the first time ever, online streaming services such as Netflix, Amazon Prime, Hulu and others have beaten global cable and DTH industry.
This means that now, at this very moment, there are more subscribers of online streaming services, compared to Cable and DTH services.
And this is indeed big.
This fact was revealed by The Motion Picture Association of America (MPAA), during in their annual report for 2018.
As per the findings of the report, which cover global subscribers, there are 613.3 million users of online streaming services right now, which is 27% more than last year.
Hence, Netflix, Amazon Prime, Hotstar, Hulu and other OTTs added whooping 127 million new users in a year.
Compared to this, cable and DTH subscribers right now are 556 million globally, which is a drop of 2% compared to last year.
Hence, we can clearly see the reason behind this drop of cable and DTH users.
But Revenues Of Cable and DTH Sector Grows
Interestingly, despite the decreasing number of global subscribers, revenues churned out by the cable industry grew in 2018, and grew faster than online streaming services.
As per the findings of the report titled Theatrical and Home Entertainment Market Environment (THEME), cable and DTH industry, as a whole all over the world, generated revenues of $118 billion, which is $6.2 billion more than 2017.
As per industry observers, there is a huge overlap of subscribers from both the sectors – There are still millions of subscribers who have both cable/DTH connection, and subscription of any one or more than one online streaming services.
This overlap can be the reason why revenues generated by Cable and DTH industry is more, despite falling subscribers.
However, as the market saturates, and more high-quality content is added by the OTT players, cable and DTH players can witness a massive shift in revenues, and subscribers, both.
You can find the full report right here.
Another very interesting finding, this time from a Deloitte report: More Americans are now paying for online streaming services, compared to cable and DTH services. Here is the report.
This clearly shows that when it comes to the world of entertainment, then the world order is changing, and changing fast.