The writing has been on the wall for some time now. Traditional pay TV providers have been steadily shedding subscribers for years as streaming video options continue to expand. It’s not all about cutting the cable, though: as high as 31 million Americans have never paid for cable or satellite to begin with. When will it end? Will streaming become the new norm? According to the latest market research report, over a third of American households will cut their pay TV subscriptions by the end of 2019. Is the end of traditional pay TV in sight?
The latest data were published by Convergence Research Group who estimate that 4.56 pay TV subscribers could cancel their subscription this year. If that pans out how Convergence predicts, it will mean that as high as 34% of U.S. households won’t have a traditional pay TV subscription. That’s over a third of all American homes; when will the 50% tipping point be reached?
The decline in pay TV subscriptions has also predictably led to a boom for the big names in streaming video and television. Convergence found that among the 66 largest internet video providers, revenue grew by 37% last year to reach $16.3 billion annually.
It’s still unknown whether more streaming services will necessarily lead to more streaming subscribers, but the market continues to expand. The world’s biggest telecom providers are scrambling to get their own streaming video services to market to try and get a piece of the ever-growing pie as more households cut the cord in favor of streaming television and on-demand video.
If one-third of US households will cut the cable by the end of the year, what will happen next year when highly-anticipated services like Disney+ and Apple TV Plus hit the scene? When will reach peak streaming service saturation?