Stream Services Now Generate More Revenue Than Comcast




Cutting the cable connection to coax connector illustrating retired people cancelling cable TV service

Cutting the cable connection to coax connector illustrating retired people cancelling cable TV serviceCord cutting, which has seen steady growth over the years, has taken off in 2016. Now it looks like streaming services are starting to see the reward of their investments.

Strategy Analytics, a research firm, projects that OTT video revenue will surpass $30 billion by 2020, up from $19.45 billion in 2016, with steady double digital growth.

2016’s $19.45 billion is no minor feat for streaming services, particularly because in 2015 Comcast received $5.3 billion in revenue from their traditional video services.

ott-video-revenue-blog-e1471433740533The only potential downside to streaming in 2016 is the slight drop in digital rental services like Amazon Video. Overall digital rental revenues are expected to be less than 5% of all streaming service revenue. Although services such as Amazon Video still rent far more movies than traditional services such as RedBox the trend from renting to subscription is getting stronger.

Cord cutting and streaming are still new concepts with bright futures. What will they look like in 5 years? At this time, all we know is that cord cutting is strong and streaming video is even stronger.

Even with the recent growth in cord cutting there are still tens of millions of cable subscribers with millions of them considering becoming a cord cutters, making the future of streaming very bright.


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