US streaming spending to exceed pay-TV by 2024 | Media Analysis | Business | News | Rapid TV News
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In what could be a landmark for the entertainment industry in the country, research from Strategy Analytics is projecting that viewers will spend more on streaming video than pay-TV for the first time within the next three years.
US Consumer Spend Strategy Anallytics 28Apr2021
According to the US Subscription TV Forecast report, consumer spending on traditional pay-TV services fell by 8% to $90.7 billion in 2020 and will likely decline further to $74.5 billion in 2023. By contrast, spending on streaming services such as video-on-demand and internet-delivered subscription TV, rose by 34% to $39.5 billion in 2020 and will reach $76.3 billion in 2024, passing pay-TV for the first time.

The report also predicts that by 2026 pay-TV will account for only 40% of spending on video and TV services, compared with 81% ten years earlier. This continued shift in consumer expenditure said the analyst was the most important sign of the transformation in the television and video business which is engulfing content producers, aggregators, distributors, and technology partners.

Yet despite the many challenges it has faced, pay-TV still commands much higher monthly revenues from its declining base of customers than from any single SVOD service, Strategy Analytics cautioned. Yet it added that as more households add new SVOD services while cutting the pay-TV cord, revenues will inevitably shift further away from legacy pay-TV.

“The revenue picture gives the best illustration of the relative strength of new and old businesses,” said Strategy Analytics director, TV and media strategies Michael Goodman. “The fact that viewers are willing to divert an ever-increasing share of their entertainment wallet away from pay-TV and towards new internet-based services demonstrates that the future lies with streaming video services rather than legacy pay-TV players. This is a long-term transition, but there is no doubt that the writing is on the wall for pay-TV as we have known it for more than 40 years.”

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