Despite predictions that live streaming television was going to be one of the hottest features in 2017, interest in such services seems to have fallen flat, says research from Market Strategies International.
The survey revealed that nearly a dozen new name-brands entered the video streaming market over the last year, and virtually all of them offer and highlight live video streaming. Nearly three-quarters (73%) of the US population used streaming services and nearly one-third (29%) of those who stream have either cancelled or downgraded their traditional TV services. This, says the analyst, marks a dramatic change in how television is sold.
Yet with the exception of sports and news, the research showed that viewing live content was not in high demand as it is currently offered. Indeed, only 11% of all streamers were found to pay for live streaming television.
“TV providers are failing to recognise that the habits and needs of the viewer have dramatically changed, and the old rules of television no longer apply,” explained Greg Mishkin, vice president of research and consulting at Market Strategies. “TV providers must evaluate and revise the business model to fit the needs of the consumer, because if they don’t they are setting themselves up to fail. While Netflix has the highest use rate and share of wallet by a long shot and is the provider to beat, there is not a clear winner yet. None of the current providers has cracked the code on what consumers want. However, the research clearly shows that the strength of the leaders is due to their ability to break free from the old rules of TV.”