During the summer in a normal year, cable TV is king. That is because the major networks are on Summer hiatus, and they are glad to just play re-runs. During this time, cable channel viewership goes up. However, this year is not normal. The cable companies and major networks have seen an average drop of 22% in viewership over the last two years. While this is a dramatic drop, some are not totally surprised.
This drop has been attributed to the streaming services like Netflix and Hulu. With the rise of internet speeds world wide, the deluge of new streaming companies, and great original programming, it is clear the streaming companies have taken the place of cable watching in the Summer. In fact, 21/30 most watched cable channels hit the skids in July 2015.
Of course, Netflix and Hulu are not the only players in this market. Seeing the current trends, quite a few channels have launched their own streaming services. Popular channels like HBO Now, Lifetime, AMC, Amazon Prime, and Showtime have all launched their own Over The Top (OTT) streaming services. Other services like Roku and Sling TV also offer content. An OTT service is a channel that is offered without a multi-channel tv company.
As we mentioned, these streaming services have great original content. As an example, Netflix went from content provider to content creator in 2013. Beginning with their political drama, House of Cards, that premiered Feb 1st, Netflix spared no expense in making their original content. Ranging anywhere from $49 million for Orange is the New Black, to over $60 million for House of Cards, it is clear to see Netflix takes their original programming seriously.
Whether the issue is portability, or just the need to get rid of that bloated cable company subscription, it is not hard to see why streaming companies are becoming popular. With more and more people on the go, many companies offer convenient apps for streaming services on mobile devices. In theory, you could be on the beach and enjoy the latest season of Orange is the New Black, or even watch the latest episode of Game of Thrones from the top of a skyscraper. It is no wonder that streaming companies are winning this duel.
