The online streaming industry has been on the rise for some time now. And it’s not just because of the newer generation. Even the baby boomers are enjoying services like Spectrum TV Packages. The online streaming industry is estimated to be worth $ 125 million by 2025.
The real question becomes why. Why is online streaming so popular? And what does this rise in popularity mean for traditional TV?
The Start of Online Streaming
You might think that the concept of online streaming began with services like Netflix. But you would be mistaken. The fact is that the concept of online streaming is actually one of piracy. That’s where online streaming started.
Before services like Netflix existed, some websites would host TV shows and movies. The problem with that though was the websites were hosted pirated version. Which means that the producers of the movies and shows were not getting any royalties.
While this meant that for us, the consumers, streaming was free. Since these websites hardly asked you to pay for subscriptions. The producers started losing money that they would have made from DVD sales and even movie tickets.
From Free to Paid Streaming Services
With the rise in popularity of online streaming, albeit pirated, one thing was clear. There was a huge demand in the market for online streaming services. The only thing left to figure out was how to make it legal. And how to give the subscribers value for their money.
So the powers that be, put their heads together and came up with a viable solution. Online streaming services which were supported by producers and networks. The best example of this service is Netflix. Although it took some terrific marketing strategies, services like Netflix were able to succeed.
Around the time when services like Netflix were on the rise, there was an uprising. The big movie and music producers had had enough of piracy. And with the help of tech companies like Google, they were successful in banning free streaming websites. So even if you wanted to, search engines like Google would make it difficult to find these illegal sites.
The Shift from Cable
There are many reasons for the success of the online streaming industry. Before online streaming was available, the only entertainment was through cable or satellite TV. But people’s lifestyles began to change. With the advancement of the technological age, people started demanding what they wanted, when they wanted it.
This trend, brought on by the internet affected not just our entertainment demands, but also our shopping habits. And it also found its way into our professional lives. Websites like eBay made it so that we didn’t have to wait to shop. If we wanted to buy something, we didn’t have to wait to go to the shops.
So we got into the habit of getting what we want when we wanted it. And when you have the option of watching your favorite movie or TV show, why would you not? Instead of letting the networks decide what we should watch, we started making the decisions ourselves.
How Does Online Streaming Affect Cable TV?
Cable industry today has recovered from the effects of online streaming as much as it can. But it wasn’t without challenges. At first cable service providers tried to recapture their markets by lowering prices. It helped that fiber optic technology made it cheaper for service providers. You can see the price difference between packages today and a decade ago.
For some time that strategy proved successful. But streaming services continued to advance and offer more value to consumers. Like Netflix and its original content. Online streaming services started developing original content for their subscribers. The streaming itself became faster and offered better quality.
Additionally, streaming services were available for mobile devices. That meant you could easily stream on your smartphones and tablets. That is when cable TV executives decided to steer into the skid. And started developing their own online streaming platforms.
Where is it All Heading?
So what does all this mean? Does it mean the end of traditional cable services? Are we all just going to have to subscribe to online streaming services from now on? Have you ever heard of the term ‘too big to fail’? Well, cable companies like Spectrum don’t just offer cable. They are also the providers of internet and voice services.
That means they will remain in business for as long as we need internet and voice services. Although cable is transforming into something new, it doesn’t mean the end of the cable. We will always need things like Charter Spectrum bundles. And with the growing popularity of cable-provided online streaming platforms ensures this. We can expect another change in trend from third-party online streaming websites.