Streaming Came Disrupting but Not Eliminating

Streaming came disrupting but not eliminating

Television, as the last mass media of twentieth century to be disrupted by technology, is somewhat tough. However, the rising cable subscription fees, coupled with the sexy new viewing options via Internet, drives millions turn to OTT (over the top) platforms like Netflix. Therefore, many industry insiders reach the conclusion that the death of television is drawing, but still, several years passed, they survive.

What Internet really revolutionize is the viewing habit of audiences, a significant force explaining the pervasive fallout. The portability of devices such as tablets and smartphones exacerbates the cord cut crisis for both cable operators and network companies. Cable operators lose a considerable amount of their stream revenue—subscription fees whereas networks stumble upon the viewership—the leverage they own to charge advertisers.

Though cord-cut households continue to rise every year, 90% of Netflix users still pay for a TV subscription, suggesting that OTT platforms are adds-on rather than substitute for now. Why? Probably because consumers never stop to seek richer variety of entertainment content available. Content, whose spending is booming within OTT platforms, saves networks from elimination. To fulfill the needs of majority of audiences, Netflix still cuts deals with major networks despite the massive original content investment. For networks, the path to profitability never comes from one stream, with licensing deals revenue remains stable and even surges due to the facilitation of international market growth. The hungry-content overseas streaming services bid for the streaming rights of American-made shows, which prompts network executives to reassess the value of the show, transitioning from rating to a combination of instant rating and performances in the long haul such as international market. For cable operators, their internet services, another indispensable stream of revenue, cushion the blow of OTT platforms. After all, streaming services only work when you have access to high-speed internet connection. Facing the possible loss of subscriptions, the operators are coming up with new devices enabling the installment of Netflix and other streaming services, turning them into a friend rather than a foe.