USA'S STREAMING SUBSCRIBER REVENUE ON THE RISE, CORD-CUTTING TO ACCELERATE

The majority of households still pay for traditional television services, but statistics predict there will be an acceleration in cord-cutting. According to data from Convergence Research Group, 36% of homes didn’t pay for regular TV at the end of 2019. The sites estimate that the number will grow to 42% this year, and reach a majority of 54% of consumers in 2022, which means cable will be among the minority of the population in just two years. Streaming video has now obtained a third of cable numbers, evidently showing the stranglehold streaming had on the traditional television market.

Revenue decreased significantly from $100 billion in 2019 to a forecasted $94.8 billion in 2020, with further cable revenue declines expected. CRG discovered a rise in revenue for streaming services upon conducting a study involving 77 video subscription services, including Hulu and Quibi, and estimated an increase of USD 28.5 billion, a 29% increase. That growth comes on top of a 35% gain to $22 billion in 2019. The companies expect revenues to hit USD 44.2 billion by 2022. “With programmers having jumped in with both feet, and Apple, DAZN, and Quibi joining Netflix & Amazon’s spending parade, the OTT arms race has truly begun,” the TV Couch Potato report said.

Meanwhile, more services are on the way from AT&T, Comcast, ViacomCBS, and Discovery. It’s not clear whether CRG considered the coronavirus pandemic while making their predictions, but given that mass quarantines took effect less than a month ago, it’s likely the predictions will underestimate the numbers. The report states that While Disney+ and ESPN+ quickly exceed their subscriber target forecasts, Hulu which has seen subscriber growth through price discounts and major programming outlays remains unprofitable. “It is unclear what programming supply will look like in the medium-long run,” the report said.