Netflix & Hulu Are Growing Far Faster Than Cable TV…




netflix-movies-expiring-jan-2014In just one more sign that cord cutting is quickly overtaking traditional cable TV we get a study today from The Convergence Consulting Group. Their study shows that revenue for online subscription streaming services, such as Netflix and Hulu, grew by 29% in the United States but traditional cable and satellite TV providers’ only grew 3% in 2015.

That means the rate of growth of revenue for services, such as Netflix, is almost 10 times that of a traditional pay TV supplier.

This growth in 2015 will likely be unseated in 2016 as new services, such as PlayStation Vue, join the online market and even others, such as Sling TV, add new options. Last year is likely just the start as cord cutting picks up speed.

So why does this matter for cord cutters? As more revenue is made online there is more money to spend on content and improving online services. As more people pitch in the $8 a month for Netflix there is more money Netflix has to make new shows and buy other series.

It’s also about perception—people like to work with services that are growing and successful. With a study like this out there more people will start looking at launching new services and making online content.

In the end cord cutters are the ones who will win as online media makes more money.

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