Streaming services hit new milestone in US 1:13
(CNN Business)– The people of America cut the cord. According to a Nielsen report, Americans are watching more TV through streaming services than through cable operators for the first time in history. The milestone was long overdue as viewers changed their viewing habits and ditched their expensive cable packages for cheaper alternatives.
In July, streaming accounted for 34.8% of all TV viewing, up nearly 23% over the past year. Both cable and streaming viewership declined year over year, with cable hitting 34.4% and streaming just 21.6%. Both are down about 10% since July 2021.
Nielsen notes that streaming has outperformed traditional TV before, but it’s the “first time it’s also outperformed cable TV.” Netflix, Hulu and YouTube also achieved record shares, with Netflix being the largest streaming platform thanks to the new season of Stranger Things.
The report’s findings are not surprising, but it is a game changer for the typical American viewer, as well as for the industry. Entertainment companies are spending billions of dollars to improve their streaming services and prepare for the future. But the glory days of streaming may be over: the war over subscribers at all costs is over.
Disney is raising prices after losing a ton of money on its various streaming services. Netflix recently hiked prices and cracked down on password sharing. Warner Bros. Discovery, CNN’s parent company, is scrapping movies and series left and right, reversing its controversial “everything under one roof” strategy. All three services mentioned add advertising to their offerings.
Streaming itself isn’t going anywhere, it’s the present and future of Hollywood, but spending now and asking after seems to be coming to an end as these services mature and media companies cling to what generates money.
“The streaming wars ended because subscriber growth stopped,” Michael Nathanson, media analyst at MoffettNathanson, told CNN Business. “You are waging a war in a country that has run out of resources.”
— With reporting by Frank Pallotta of CNN Business.