The MPAA (Motion Picture Association of America) has now published findings that online video streaming services are more popular than cable. It was only a matter of time. People are looking to cut cable out of their monthly expenses because of the high price of cable compared to a video subscription service that can range $10-$40 per month. The MPAA reported that the entertainment market grew to a new high in 2018: $96.8 billion which was 9 percent over the 2017 mark. The rapid increase is evident when looking at the number of subscribers added from 2017-2018: a 27 percent increase from 482.1 million to 613.3 million. Cable dropped to 556 million customers- a drop of two percent.
Cable still remains a more profitable business than online streaming services. Despite it’s decline in subscribers, cable TV companies saw their revenue increase. Cable TV companies reached $118 billion in total revenue, a gain of $6.2 billion in 2018.
The continued rise of streaming video isn’t much of a surprise, especially when companies like Amazon, Hulu, and Netflix have grown in recent years to compete with traditional television networks. We should see an increase in streaming providers with companies like Apple, Disney, and NBCUniversal all set to introduce their own streaming platforms in 2019.