In a study from IAB, it is estimated that digital media like Netflix, Hulu, and Amazon Instant will make more money than cable TV by 2017. This is a dramatic shift from 2013 when cable television made $75 billion and digital media only $43 billion.
There was also a report from eMarketer that 26% of all calls to cable companies for new service ask for Internet-only service. According to advertising technology company Marchex of those who want Internet-only service about 60% end up with just Internet. So, cable companies are still doing great keeping people in the fold.
Yet they are not holding on to all of their subscribers. According to the Wall Street Journal:
- Cable subscriptions among 18 to 24 year olds dropped to 71% in 2014, down 6% from the year before.
- 71% of pay TV subscribers aged 25 to 34 also had Netflix in 2014, up from 51%.
- 58% of 50- to 59-year-old TV subscribers also had Netflix in 2014, up from 19% in 2013.
While cable is still strong, the writing is clearly on the wall that its years of domination are coming to an end. Every percentage that cable TV drops in market share is a huge gain for cord cutters. The growth of online media revenues will only keep looking more attractive to an increasing number of content owners.