While it seems like everyone is cutting cable these days, the truth is the majority of homes still have traditional television. But that could soon reach a tipping point.
According to data from Convergence Research Group, 36% of homes didn’t pay for regular TV at the end of 2019. They estimate that the number will grow to 42% in 2020, and finally to a majority of 54% in 2022. So in less than two years, we could finally see a market where cable is in the minority.
As cable’s freefall continues, their predicted revenue is also down – from $100 billion in 2019 to a forecasted $94.8 billion in 2020. That’s a 6% drop, which is only expected to get bigger in the coming years.
Of course, with cable declining, revenue for streaming companies is on the rise. CRG took a look at 77 different video subscription services (ranging from the big names and established services like Hulu to new services including Quibi) and estimated they would grow to $28.5 billion – an increase of 29%.
While streaming video is clearly on the rise, it’s striking to see their “skyrocketing” success equal a third of cable’s sagging numbers. It’s a clear picture of the stranglehold cable had on the television market.
It’s not clear whether CRG figured the coronavirus epidemic into their predictions, but given that mass quarantines just took effect less than a month ago, it’s very likely their predictions will end up on the low side.
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