The Decline of TV
Much like the music video in 1979 foretelling the fall of radio, we now stand on the precipice of the fall of Television.
If you are behind on the times, or are not a major internet user, you may be slow to realize that “Television” – cable, satellite, and other TV – “subscriptions” bought through a provider, is dying. Streaming is becoming the new ‘norm’ for consumption through a TV, so much so, that Netflix is probably more well known now, than something like DirectTV was known years ago.
Even though something like Hulu still contains ads, the way we consume content is changing, and far more we are seeing the age of binge rise.
What is binging? It is the ability to watch an entire show in one or two sittings, because they release the entire series in one go, instead of one episode a day or week. Also, the on-demand aspect is coinciding with our need for “I want this now now now” mindset.
But as with all things, the internet is becoming over-saturated with television services, as each individual channel is beginning to get its’ own streaming service. I believe soon, the big named companies will begin to consolidate these channels and offer packages for all of them, as we move completely to a digital streaming space.
Did you know YouTube is quickly advancing on Television for viewership data? Let me throw some statistics at you based on a Google study performed in 2017 – At an almost alarming statistic, YouTube has an average of 1 billion views per day, with a 95% advertising view-ability – pause for a moment and think about that. As of Q1 2017 Netflix reported having more paying subscribers than all cable companies combined (49.4Million (N) vs. 48.6Million (C)). In Q1 2016, over 50% of all households had streaming services.
What does this mean? You see, cable provided by communication companies runs off commercials, and ads. If you read into the statistics above, you can see there is a downward trend towards the use of the average television service. This is going to prompt bigger name companies to change where their ad revenue is siphoning into, and ultimately, television is going to go extinct as more and more businesses realize their cash is going to be better spent on streaming and digital.
Internet based ad spending is estimated at $280B this year (2018), while Television ad spending is at an estimated $190B. Let’s compare this to 2004 where Television was at $130B and the internet was at $14B.
Big companies are going to start throwing their budgets into the internet, and television will die. One of the biggest things to happen to the internet in this decade is TwitchTV. I will do an article on TwitchTV tomorrow, as there is a whole other slew of things I want to talk about. YouTube is easily becoming the new television, as we move to consume video viewership on phones, and computer.
Now is the time to invest in some land grabs in the virtual space. Companies are throwing billions and billions of dollars into getting noticed in various avenues on the internet, and there are individuals out there being paid thousands of dollars just doing something simple like blogging about makeup.
Slowly but surely we are converting to a fully online, networked society, and becoming an integral facet to the niches of something within it will be a valuable asset when things like the “Department” store die. Side note, I don’t really see Grocery Stores phasing out, as I think a lot of people want to physically see their food when they purchase it, however I do see a huge rise in physical Grocery Stores delivering those groceries to people at home.
Until next time,