Tuesday, September 08, 2015

The decline of television

Online video streaming continues to climb significantly, and soon it is predicted that more people will consume online video content than TV content.

Ericsson, a Swedish communications company, recently published findings that illustrate how online video streaming has skyrocketed in the past several years (see graph below). The purple line illustrates typical television viewership, and the light orange line signifies on-demand video viewership from multiple sources (YouTube, movies, TV shows, etc). When the light orange and purple lines meet, online video streaming hours will meet (and quickly surpass) scheduled tv viewing.   

These recent trends should not come as a surprise. The number of available platforms made for online streaming have skyrocketed in the past decade with iPads, large screen smart phones and lightweight laptops part of our daily lives. Online content is everywhere, and we have endless ways of enjoying it.

Cable and paid networks (HBO, Starz, etc) also add a boost to monthly bills. It's no surprise that young people are trending away from costly cable subscriptions, choosing instead to find free content online.

The advertising and marketing ramifications of these trends are massive. It is becoming ever more important for companies to market themselves online - not just in social media platforms, but across online streaming ones as well. We can expect online video companies like YouTube, Vine and Hulu to work to profit off this boost in online advertising as we move forward.
Sources: http://www.techinsider.io/streaming-will-soon-pass-traditional-tv-2015-9#ixzz3lA2Q9xRThttp://www.mediapost.com/publications/article/241212/forecast-streaming-will-surpass-trad-pay-tv.html, http://www.wired.com/2014/10/online-viewing-soars-internet-tv-will-tv/

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