With new services trying to emulate Netflix and Hulu popping up every day, it may seem like traditional satellite and cable TV is becoming obsolete, but is it? Millions of Americans have said they want to switch from traditional TV to on-demand streaming, but very few actually have. This has made many researchers beg the question, what’s stopping them?
Selection. That is one thing that services like Hulu don’t have compared to the traditional method that gives you hundreds of channels that are constantly playing shows and movies 24/7, non-stop. No matter how many shows Hulu and Netflix get to sign-on to their service, it comes with two consequences: adding cost for customers and delayed playing times.
While Hulu is doing pretty well when it comes to keeping up with the release dates of some new shows (about a week delay typically), the selection is still slim, and other services are doing even worse. Netflix was the pioneer in video-on-demand streaming services, they brought millions of customers into the industry with a $9.99/month subscription.
While Netflix originally started pushing itself with on-demand movies, as more citizens announce they want to cut the cords and get away from the traditional TV, competitors have begun to spring up. All of the competition has led to a great push within Netflix’s headquarters to get more TV shows and new releases onto their service, but they aren’t fairing too well. While Netflix has managed to gain nearly 60 million subscribers, current users still frequently disregard them due to their outdated selection of TV shows and movies (and lack of variety).
Obviously, on-demand streaming services have to find a balance between new releases and classics while keeping their prices low and selection wide. This is tougher than it seems, and new companies are still trying to find a way to fill the gap. With this being such an issue, why do so many Americans keep trying to get away from traditional TV?
Cost. Since the beginning of the 21st –century, traditional TV subscribers have complained about the cost of cable and satellite. But, this obviously wasn’t an issue until a few years ago when sites like YouTube began to find their way into the world of TV and movies. Before, traditional TV was the staple for in-home entertainment. If you didn’t like what was on, you rented a movie or went to the theaters. With the up rising of digital and on-demand streaming, the market changes drastically, and pretty instantly, too.
It wasn’t long before people began to realize that on-demand services could be incredibly profitable, and then services like Netflix began. Subscribers saw the convenience of the “watch whatever you want, whenever you want” model and quickly jumped on board. The less than $10/month fee wasn’t bad, either.
But, today, in the world of instant movies and on-demand television, people are becoming pickier about selection while still demanding a low-cost. This is something traditional TV providers have been doing their best to achieve for years. Obviously, especially in today’s market, traditional TV providers are having to lower their prices as much as possible while broadening their packages and doing their best to adapt to the digital world. While companies are attempting to stay on top of things, is the market leaving traditional TV behind?
The short answer: no. There are still billions of traditional TV subscribers, and while many say they want to make the switch, two problems still haven’t been solved: cost and selection. Until those two things are balanced within the world of video-on-demand services, there’s a good chance traditional TV users will stay right where they are: in an area where they can get a good deal from their cable/satellite company without sacrificing the hundreds of channels available at their fingertips.
While it’s true Netflix has nearly sixty million users, researchers have revealed that the majority of those users are also subscribed to other on-demand services, and many are still traditional TV subscribers. While on-demand television has proven to be convenient and extremely profitable, it’s very unlikely that traditional TV users will be ditching the industry anytime soon.
In fact, it’s much more likely that both the traditional TV and on-demand TV industries will continue to grow, not separately, but as a compliment to one-another. Since traditional TV began, it has been the perfect way to discover new shows, enjoy your favorite series, and have fun with the family. On-demand services have brought similar benefits (with less selection) and also allow you to sit down and watch a classic movie, older TV show, or even your favorite Netflix (or Hulu) original with the family whenever and wherever.
Either one of these solutions can fit the needs of American families, but it’s more likely that instead of progressing separately, TV-lovers will continue to enjoy both services together. Doing so gives you the convenience of on-demand movies and the wide selection of traditional TV.