In the last few years, I’ve noticed my television watching has changed. I no longer watch shows on an actual television. I either watch on my computer or tablet via Netflix, Hulu or on “the go” via my cable provider. With today’s demanding schedule, I have little to no time to watch a show when it actually airs. I prefer this method as it is convenient. Many of my friends feel similarly. Plus, Hulu and Netflix offer great pricing compared to the actual cable bill.
Apparently millions of consumers feel the same way that I do. In 2013, 1.8 million people unsubscribed from cable television. Now, this could be a combination of willing and unwilling customers. However, it is a figure that should be analyzed.
So what is at jeopardy? Ad dollars of course! In 2014, cable TV providers received $12 billion on advertisements aired on TV dramas in 2013. In addition, these gigantic broadcasting companies collected $6 billion advertising dollars from news and sitcom programs. If Netflix and Hulu are taking away customers, they will also take advertisers with them. And this could affect the bottom line for cable providers. Commercial advertisements are how millions of companies communicate to consumers on a daily basis. This could lead to new and more creative methods of advertising; like the smart shirt I discussed in my last post.
But then again, I prefer to watch shows on Netflix and Hulu due to the commercial free segments in most cases. So the advertisers following suit on these mediums could lead to the development of another medium. And with today’s need for new, it is only a matter of time before another competitor enters the ring.