Pay-TV revenue is steadily declining
By 2024, Americans will spend more on streaming than on paid TV. In 2020 alone, consumer spending on traditional pay-TV services fell 8% to $ 90.7 billion, the result of a “trunk-cutting” event. By 2023, the cost of housing for pay-TV channels will reach $ 74.5 billion, their lowest ever.
Streaming on the way to 100 billion revenue
At the same time, streaming continues its incredible expansion: the cost of streaming services (subscription television broadcasting on VOD, SVOD and the Internet) has increased by 34% to reach $ 39.5 billion by 2020 and $ 76 billion by 2024. TV for the first time.
According to Strategy Analytics, Bay TV will account for only 40% of video TV and TV service spending in 2026, up from 81% a decade ago. However, the U.S. Subscription TV forecast report indicates that TV receives more monthly revenue from its declining customer base than any other SVOD service. However, when a large number of households cut the pay-TV stem of new SVOD services, the revenue will inevitably leave traditional pay-TV.
Michael Goodman, director of television and media at Strategic Analytics, explains “The fact that viewers are willing to divert an increasing portion of their pay-TV entertainment portfolio to new web-based services proves that streaming services are the future rather than the payoff of traditional TV players. This is a long-term change, but we know for more than 40 years that games are being created for pay TV.