Cable television was once considered to be the main source of entertainment for American families, but recently, it has been taken over by new technology and the availability of streaming services. Companies such as Netflix, Amazon, and Hulu have come to dominate the market, causing more cancelations of cable subscriptions and the increase of on-demand media. A Nielson study in 2013 recorded that close to 5 million American homes have opted out of traditional cable and have chosen to use their TV sets for other purposes—including streaming favorite TV shows and movies.
The largest demographic to switch toward digital entertainment happens to be millennials in their 20s and early 30s, who with the rent success of own channel TV shows such as the retro themed 80s sci-fi show Stranger Things has caused a cultural shift not just on TV but also with the resurgence of retro and traditional bar games (pool tables, ping-pong, shuffleboard, darts, etc..) with a modern twist for this engaged market.
As more products and entertainment become available within seconds, younger viewers look to find the same access in their favorite television shows. Streaming services like Netflix have made it possible for viewers to choose their own programming and have shows and films recommended to them, avoiding the deliberation of what they should watch.
“One thing I like about Netflix, Amazon Prime and a few of some other channels is the ability to stream old TV shows that I can watch sequentially at my own pace,” Forbes writer Larry Magid says. While young adults seem to be most likely to cut the cord, older generations are also seeing the advantages of choosing a few streaming services over hundreds or even thousands of channels provided by cable television. In 2016, it was estimated that about 52.6 million American homes subscribed to Netflix, while Amazon followed closely behind at 25.2 million Prime subscribers.
Sequential viewing and availability are not the only reasons viewers are switching over to one or more streaming services. These platforms are also invested in creating their own content, which has shown to be immensely popular among viewers. Shows like Orange Is the New Black and Fuller House have brought over new subscribers that might not have been interested in streaming services before. As the quality of these shows and films increase and as they become recognized by traditional gatekeepers like the Oscars and Emmy Awards, more and more interest is gained.
Films like Mudbound and Manchester by the Sea managed to both get nods from the Motion Picture Academy establishment, adding to the legitimacy of streaming services and the quality of their product. While channels like Netflix do often struggle in terms of marketing because of their policy to release an entire season at once, they do offer an intuitive algorithm that helps viewers find similar content while directing subscribers to other shows or films that have been created for the platform.
This new content caters toward viewers and can be made at higher budgets, which television networks might not be able to provide. Streaming has also eaten into the ratings of many TV channels, many of which saw up to a 40 percent decline in 2015. It might take years for a show on television to be properly developed, while creators for shows on Amazon Prime or Netflix do not usually have to jump through as many hoops in order to have their visions made into reality.
Another aspect of streaming services that has made them popular among American households is that viewers’ favorite television shows and movies can be taken anywhere. Due to the popularity of tablets and smartphones, subscribers to Netflix or Amazon Prime can catch up on a sitcom or drama almost anywhere there is a data connection. Traditional cable television requires dedicated time set aside to view a new episode each week, while streaming services make it easy to watch on several devices. With the ability to pause a show on a laptop and resume on a smartphone without missing anything, streaming services do not require subscribers to take time out of their schedule in order to see the latest episode.
“I can watch these shows on multiple devices. Sometimes we watch them on our Internet-connected TV, but I also watch them on my laptop when traveling or when I want to sit in the backyard,” Magid mentions.
Because streaming services have taken off so rapidly, several cable channels have also created their own ways to provide streaming to viewers. HBO Go, Disney, and Showtime are just some of the companies who have jumped on the bandwagon and have tried to appeal to a new host of users by creating their own platforms. Disney has announced that it is planning on pulling its movies from Netflix in order to develop its own service, putting it in the running as a competitor for Hulu, Amazon Prime, and Netflix itself.
It is unlikely that TV ratings will make a rapid turn and viewers will go back to watching a weekly serial format. Along with the fact that advertising is not supported on Netflix, subscribers are also given an immense amount of freedom in what they choose to watch and when. Over time, trends from eMarketer suggest that spending on streaming services is only going to increase. It might not be long before the majority of Americans choose to shut off their cable boxes and switch to a platform tailored for them as individuals.
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