Television was pretty straightforward for a long time, we had TV networks that made programming each year to attract viewers. People had to devote a certain time of day to watching their favorite TV shows or a movie. With the rise of on demand streaming services, this is all changing. This allows viewers to choose what and when they want to watch. Traditional TV isn’t dying, it is simply evolving.
No more channels
The real struggle was choosing one channel to watch out of thousand. Today, we don’t have that problem. With streaming services like Netflix, Hulu, HBO Now, people don’t have to choose. They offer on-demand content, whenever we want it. Viewers can choose from a variety of popular TV shows and Movies currently airing on regular television. Customers simply refuse to pay overpriced subscriptions for hundreds of channels they don’t even watch. On-demand streaming seems to be the future of television.
No more commercials
The way network companies make money is through ad revenue and subscription. Most streaming services earn money solely through subscription. Take for example Netflix, the company doubled their viewers from 1.2 billion to 2.4 billion in the span of two years. And without any advertisement whatsoever. Netflix charges less, but doesn’t pay cable providers to air their program. Although viewers prefer the ad-free model, not all companies go with that business model.
Advertisers used broadcast and cable networks to target vast numbers of viewers. Especially during big events like Superbowl or the Olympics, when they could pitch their product to millions of viewers. But streaming services that are not ad-free allow advertisers to target their demographic more precisely. The rise of internet TV could mean less ads for the viewers, but advertisers could target relevant audience.
Cable subscriptions are sold per household. Streaming services offer personalized subscription, more like a cell phone plan. This means there is better personalization for users. According to Netflix, more than 75 percent of user activity is based on the recommendation system. Based on their previous activities, Netflix suggests content the user might like. The company analyzes search and viewing history and ratings the viewer gave. All of this is combined to provide a perfect suggestion.
Ease of Access
Traditionally, a TV was the center of every living room. Nowadays we can watch television on any screen in the house. People watch programming on their smartphones, tablets and computers. Watching TV on the train or a bus seemed like fiction, this is simply not the case anymore. With a good internet connection, anyone can access quality programming wherever they are. This means that we will experience an improvement in internet service to satisfy these needs. Of course there are areas that have bad internet reception. This might be the reason some people opt for tv antenna installation or a satellite dish.
More Smart TVs
There is already an increase in the number of smart TVs bought. This trend doesn’t seem like it is about to fade. Having a TV that can connect to the internet comes with many benefits. Aside from using apps on their TV, users could also play games. Some smart TVs come with a built in camera, which can be used to make video calls. Voice-recognition is another feature that can come in handy when you lose your TV remote. This is a game changer not only for cable providers, but also TV manufacturers and internet providers.
Traditional television isn’t dying, it is simply evolving. Streaming services cater to the needs of viewers, provide less unwanted ads and allow on-demand access to the content users actually want.