The chart above from Marketing Charts shows a stat that we probably already knew: On Demand video services are growing significantly. 76% of all households in America use some sort of media on demand. This statistic could be artificially high because it contains DVR’s which is become more standard with modern telecommunications. I think it would be safe to say 50% of households in America have a streaming service.
The number of cord cutters (aka people who do not have cable in the home) is growing. initially some thought it might be a victim of the recession but as the economy returns to full strength the number of families without cable has not wavered much. Premium tv is becoming aware of this increasingly large group of people. ESPN decided to do something about it and in doing so might have placed the first nail in the coffin of cable/satellite tv.
ESPN has announced that it is joining a completely cable free streaming program with a few other channels offered through DISH Network for $20 per month. ESPN is one of the reasons most people stay on a cable subscriptions! Why would ESPN do this? Ad revenue. As cord cutters continue to grow the value of ads on channels exclusively on cable and Atlanta networks will begin to drop.
Imagine a future where you will be able to buy small packages of the channels you actually want to watch. This is great for consumers and for local advertisers.Â Local advertisers frequently get mixed in with all the channels a media company has access to.Â Advertisers will be able to better target their ads to specific packages of channels that their customers will be watching.
This maybe the first nail in the coffin of cable/satellite tv but do not clear your schedules for their funerals anytime soon. This transformation will be years in the making and will be restricted by fast broadband access. Not everywhere is as lucky Jackson with our 1 GIG fiber network. Thanks JEA!