Published March 25th, 2019
For the first time ever, global subscriptions to online video services surpassed cable subscriptions in 2018, according to IHS Markit research cited in the Motion Picture Association of America’s “2018 THEME Report.”
The MPAA report citing IHS Markit data has shown that there were more subscriptions worldwide to online video services (613.3 million) than there were for cable (556 million) in 2018, reflecting a 27 percent jump in streaming over 2017. Cable subscriptions dropped two percent in that period. IP-based TV overtook satellite, too, indicating a larger overall shift to the digital realm.
The annual report covers both the home and theatrical entertainment markets (THEME stands for “Theatrical and Home Entertainment Market Environment”).The data in the report also indicated that people were spending more on digital video at home than trips to the theater. While theatrical spending did grow ever so slightly in 2018 to $41.1 billion, people around the world spent a total of $42.6 billion on streaming, downloads and video-on-demand. Discs, meanwhile, declined to $13.1 billion — just over half of what it was back in 2014. Spending on physical media is down 48% since 2014, while digital spending has increased by 170% in the same period, according to IHS Markit and Digital Entertainment Group research cited in the report.
Cable and satellite are still larger than streaming when combined. More importantly, cable and satellite are still the most lucrative in terms of sheer revenue, if not necessarily profit. Cable’s influx of cash grew $6.2 billion in 2018 to reach $118 billion, suggesting that those people who did stick with cable were paying more than ever. The MPAA added that most of those who were subscribing to internet services also had conventional TV, suggesting that the number of cord cutters isn’t as large as you might think.
These are nonetheless major milestones for internet video. It’s now the most popular individual TV format in terms of sheer subscriptions, and companies wanting the widest possible reach might have to pay attention.
24i Media has been helping global brands design, create and launch innovative video streaming apps across all devices and platforms since 2009. If you need some help to create or update your online video service, we’d be happy to discuss how we can help you launch video streaming apps people love to use. Contact us today to learn more.
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More than half of all Americans, or 56 percent, have the ability to watch internet video on their TVs — but they’re still watching regular TV most of the time.
Since 2015, there has been a 20 percentage-point increase in the share of adults who can get internet video on their TV, either through the TV itself or by using a device like a Chromecast, according to a new report from ad trade agency Interactive Advertising Bureau.
But a large portion of the time (39 percent), people are using these TVs to watch old-fashioned live TV. As for internet video, they’re streaming Netflix or YouTube or Hulu about 24 percent of the time.
Fortunately for subscription streaming services like Amazon and Netflix that offer TV-on-the-internet packages, that share is going up.
People who do use their TVs to watch Netflix or Hulu are doing so more often. About half (46 percent) of people with streaming-enabled TVs watch streaming video daily, up from 32 percent in 2015.
What are they streaming? Seventy-nine percent watch TV shows (either currently airing, or shows that have aired in the past), whereas a close 70 percent watch subscription originals like Netflix’s “Stranger Things” or Hulu’s “Handmaid’s Tale.”