More and more people are now opting for TV streaming services and moving away from cable television networks. In a recent survey by FBR Capital Markets, it indicates that Netflix is becoming popular to traditional TV networks. The Netflix viewing in the U.S. is set to surpass that of TV channels including ABC, Fox, CBS, and NBC by 2016 according to analysts. From my observations, it seems that online TV streaming is now becoming a favorite for many audiences who are trying to ditch the otherwise long relied-upon cable networks that are being considered as costly.
Fewer viewers are signing for cable
Cable providers are now being worried about the increasing number of viewers who are opting to disconnect from cord in favor of internet TV streaming services such as those provided by Hulu and Netflix. And not only that, it is even more perturbing that there is a bigger number of users who are not willing to sign up for the cable in the first place.
Cable TV networks are figuring out ways in which they can keep their viewers from cutting the cord by convincing them that the close to $100 a month cable contract they have subscribed to is reasonable. The TV companies may have to spend more time as they lure their customers to remain on their networks.
A good number has not signed for cable TV
A recent Forrester Research cited by The Wall Street Journal showed that about 18 percent of the U.S. residents have failed to sign up for cable television. In the population aged 18 to 31, a large number of them have not subscribed to cable TV when compared to those who are canceling the service. This indicates that the cable companies are now feeling the pinch in terms of those canceling the services and those who do not think of signing up.
Netflix has more than 62 million subscribers in the world as end of March 2015. However, the big question may be how long is it going to take for the company to lead the business? In 2016, we may see Netflix reach that mark of having more viewers than TV cable companies.
The figures of hours spend by users viewing Netflix illustrates that it has a strong market power in both the U.S. and internationally. Soon it may dominate the local market and replicate the success in other markets around the world.