As if it wasn’t official before, cable and physical media are dieing and it’s being announced with as strong a voice as ever. According to the IHS Screen Digest. American viewers will watch 1 billion more movies online this year than on DVD and Blue-ray combined.
The information suggests that nearly 3.5 billion movies will be streamed online. That’s just movies! The trend towards streaming content is nothing new, but has really gained traction over the past year especially. An increase in Netflix offerings along with more awareness of other streaming services like Amazon Instant Video and Hulu Plus have made finding content easier than ever. On top of that, many content providers are offering their broadcast television shows online which gives users the freedom to watch their favorite programs on a schedule that fits their lifestyle.
Information not shown in the data are the numbers of users moving away from traditional cable and instead opting for a streaming device which brings all those streaming services and online content providers into one easy to navigate interface. Devices like the Roku and Boxee are gaining popularity while other users connect Windows from their laptop to a television for streaming content.
The migration away from physical media and cable television is beneficial for both consumers and content creators. Consumers benefit from lower costs and freedom to watch huge libraries of content on their own schedule while content creators gain viewers and avoid contract negotiations with cable providers. There’s still a bit of work ahead as older generations catch up with technology, but in the end physical media will die and cable television won’t be far behind.
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Just because Streaming and Digital media are becoming more prevalent to wider audiences, it doesn’t mean people are going to be abandoning TV providers en masse. In fact, it might even help certain companies. Take DISH for instance; I have a DISH account and love all the new promotions, packages and technology that has been released recently. I have the new Hopper, and on it I have my Blockbuster @ Home movie package. It gives me more than 100,000 movies, games and TV shows, and I can get these titles either by mail, in a store or streaming live. DISH also gave me an extra 20 HD movie channels to further broaden my channel lineup. The best part is DISH, in contrast to Netflix, is ADDING to its streaming library. Netflix is still clinging to its DISC business, while DISH added another 6,000 titles to the streaming library last month. My boss at DISH told me about the Blockbuster package and I haven’t regretted getting it for a minute. DISH and Streaming go hand in hand perfectly.
Hi Erik,
Thanks for the comments! I agree with you that in the short term companies, who offer it, will benefit from streaming services across the board. In fact, it’s encouraging that users have as many option as they do, thanks largely to streaming services like Netflix and others as well as the rise of set top boxes. Ultimately, the short term gains for all companies will come to an end and users will make their decisions based on not just content, but pricing and other factors. No matter how you slice it, cable (satellite included) is a more expensive option at the moment. In addition, contracts are non-existent with set top boxes and services like Hulu Plus. They’re in many ways simple in signup, viewing, account management and cancellation/hold. While I won’t generalize the cable and satellite providers, it goes without saying that their way of doing business won’t work forever.
Very true Chief. It’s inevitable, with the proliferation of content, that people will find increasingly easy and cost-effective ways to get what they want. I’m not an expert on Netflix, and seeing companies like SatelliteDirect (who claim to offer 3500 channels) leaves me wondering what consumers will lose when they decide to go it alone. One thing I like about having a provider is the customer service. I also like having the provider do the work for me in terms of GUI, channel lineup, constant maintenance to fix problems etc. Where do customers of Hulu, Netflix et al. go when they need help? Also, on a personal note, what are your favorites? Streaming, remote access, DVR etc….you don’t have to name any names, I’m just interested in the methods a Tech Guru utilizes in getting his or her content. Thanks for the help!
@Erik – There is definitely a challenge involved when assistance is needed with online content services. Since content is generally all they provide, hardware issue responsibility would fall to set-top box, etc. makers. Point being, as long as the content is provided they’ve done their job. The more popular services like Netflix and Hulu Plus are getting much better at managing and monitoring their services. For example, Netflix has been known to credit accounts when they deem their content was less than quality (without user complaint) while Hulu Plus makes managing an account straight forward. In regards to my content preferences, I’ve sampled them all. I find satellite to be quality, but customer service was beyond lacking and contracts are too constraining. Cable/DVR I find to be similar in quality, but priced unnecessarily well above any other options. Streaming/Set top boxes I find extremely flexible and inexpensive but lack immediate/current content, quality is dependent upon supplier and connection speed. Unfortunately, content owners are now starting to pick and choose what is available on specific platforms and through “designed packages”. As an example, NHL Center Ice packages do not include games shown on the NHL Network. Additionally, the NHL Network must be purchased separately whether in a sports package or upgraded channel lineup. That type of round about dollar manipulation is trending forward with content owners.
Appreciate the conversation, thanks for the insight.