If anyone had told me that after 2010 there would be a major downsizing of cable TV networks and it will be replaced by a service far better and cheaper than your regular network, I would have laughed, big time. But it’s 2020, and I’m not laughing anymore; instead, I am surprised. How did this happen?
I remember being a kid back in the early 2000s; we were all glued to the TV. We worshiped it and would sneak the remote away from whoever was in charge so that we could have complete control over it and watch whatever we wanted to. But things have drastically changed now. Cable TV networks saw a significant downfall, replacing it were the video streaming services.
What led to the sudden boom in the video streaming business, and what became the primary aspect that leads to the fall of cable TV? We did a little research and may have some answers for you on that behalf.
Rise of Streaming Business
The pandemic contributed quite a lot to the rise of the streaming business. This may probably be the most significant reason as lately, the streaming industry too saw quite a bit of saturation on their end, making it difficult for users to choose any service that may fulfill their needs.
With billions of people quarantining in their homes under a strict lockdown, people turned towards their screens as a part of their coping mechanism from the worldly disasters that 2020 brought upon everyone. Or because no one had anything else to do besides just watching movies, sleeping, eating on repeat.
But luckily, the saturation of the streaming business brought a lot of options for users to choose. With so many names came variety, a diverse genre, and choices.
Disney Plus launched last year and completed its 5-year goal in the following 6 months of its launch, soaring with 60+ million subscribers. Meanwhile, Netflix made as many subscribers in Q2 as they had in the whole of 2018. Along with this, Hulu, ESPN+, Amazon Prime video made millions of subscribers as well, all because of a pandemic.
Downfall of Cable TV Networks
Another reason contributing to the rise is an increase in cord-cutters. No one would have imagined cable TV losing its position to VOD streaming services by a massive margin. The factor behind it is the increasing costs of cable TV networks. Numerous of them cost more than $100, which is extremely expensive, considering people have stopped turning their TV on to watch any shows or news.
People have found numerous alternatives that provide them with TV channels, movies, and shows on demand. It includes Hulu+ Live TV, Sling TV, Youtube TV, or BBC iPlayer, which acts as your old school British TV service that you can stream from anywhere on any device.
These TV subscription services are super convenient for the users and help them save a ton of money or divide their cash into numerous other services. As we know, each subscription service masters in different content, like there are Netflix Originals, then Disney+ has its own content along with a whole franchise or Marvels, Star Wars, and Pixar.
Hulu contains a lot of US content available in the US only, ESPN+ offers a wide range of sports. In contrast, all the TV subscription services give more than 20 channels along with news, sports, and a lot of shows according to how you have customized your plans.
Instead of wasting money on a cable TV network that no one watches, people have invested in more than one streaming subscriptions for their own entertainment and to save up. It has led to a hike in cord-cutters who have shifted their plans permanently.
Wrapping it up
2020 may have been a year for all the services as they saw a massive turnover in their revenue till Q3. But will things remain the same now that it’s been a couple of months and daily life is resuming like old times with proper precautions? People are not at home all day, and those who are, have work to do from home, which means fever time spent in front of the screen for entertainment purposes.
Some people are letting it go altogether as they resume their lives and start going out, meeting people, and spending time with their loved ones who have been locked away inside their homes. What future does this boom hold, how long will it maintain its glory? Only time will tell.