Simpson33 | iStock | Getty Images

Traditional TV continues to decline, despite rising prices for streaming services.

Total traditional TV usage, including broadcast and pay TV, fell below 50% for the first time in July, according to Nielsen’s Monthly Streaming Reportgauge.

TV usage among pay-TV subscribers fell to 29.6%, while broadcast viewing dropped to 20% during the month. Streaming usage stood at nearly 39% in July, the largest share recorded in June 2021 since Nielsen first reported monthly numbers in The Gauge.

Pay TV has been in steady decline as consumers switch off traditional bundles and opt for streaming. That drop-off rate has only accelerated since the start of the COVID-19 pandemic, when streaming usage soared.

major pay-TV providers such as Comcast Corporation And charter communicationreport often trimester drops in customers. Comcast and Charter lost 543,000 and 200,000 pay-TV customers, respectively, during the second quarter.

“We think all metrics for linear TV are bad,” Tim Nolen, senior media tech analyst at Macquarie, said in a recent report.

According to the Macquarie report, pay-TV operators reported an average 9.6% drop in subscribers year-on-year – causing losses of around 4.4 million households – and pricing “does not reverse”.

There has been a steady decline in the total number of pay-TV households, According to Macquarie, there were 41 million pay-TV households during the second quarter, down from 50 million and 45 million in the same periods in 2021 and 2022, respectively.

Year-to-date, according to Nielsen, pay-TV viewership declined 12.5%, while broadcasts declined 5.4%.

The rise of streaming services, from Netflix To disneyDisney+, Hulu and ESPN+ warner bros discoveryMax often takes the blame. But many of these operators, including Disney, Warner Bros. Discovery and Comcast, are struggling to gain share and turn a profit from streaming, while their pay-TV channels and businesses languish.

Although viewers are turning more to streaming, subscriber growth has slowed for those platforms, especially for big services like Netflix and Disney+. budding apps like of great qualityParamount+ of Comcast and Peacock of Comcast are viewed more member growth but are small client base,

Streaming companies have shifted away from using subscriber growth as a measure of success, and are instead focusing on reaching profitability in this sector as the traditional TV business shrinks.

Many consumers shun the traditional TV bundle because of its hefty prices. Now, streamers are also raising prices across the board – including disney Ad-free for Disney+ and Hulu subscriptions – to drive revenue.

Macquarie noted in its report that lackluster streaming subscriber growth hasn’t helped much in their bid for profitability.

Patrick J. as Mike Ross in “Suits”. Adams.

Shane Mahud | USA Network | NBC Universal | Getty Images

advertising is playing a big role More companies are considering cracking down on it to help boost revenue password sharing, Cutting content expenditures, especially for original programming, has been a large part of the cost-cutting strategy.

Licensed programming, especially from traditional outlets, is often one of the most viewed content due to the move away from the original.

for netflix, a recent hits “Suits” is a series that originally aired on NBCUniversal’s cable channel USA Network. The show co-starring Meghan Markle was previously only streaming on Peacock. The series has garnered streaming viewership on Netflix as well as Peacock, with 18 billion viewing minutes in July, according to Nielsen.

Netflix viewership grew 4.2% during the month, giving streamers 8.5% of total TV usage. It was followed by Hulu, Amazon’s Prime Video and Disney+, which likely got a boost from the children’s cartoon, “Bluey,” which was another licensed program rather than an original.

Leave a Reply

Your email address will not be published. Required fields are marked *