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Credit: Inside the MagicWhen it comes to streaming television, Disney+ and Netflix are locked in heated competition to see who will dominate the market. But together, the two platforms are utterly destroying both cable and broadcast television.
It has been clear for years now that media juggernauts like the Walt Disney Company and Netflix view streaming TV and movies as the way of the future; Netflix has done away with its physical DVD rental service entirely, and Disney CEO Bob Iger has gone on the record as calling linear TV a “broken business model.
While cable and broadcast television (i.e., the linear model that Iger has such contempt for) still hold a large presence in American households, they have been losing ground every year to streaming giants like Disney+ and Netflix.
This year, cable has taken the biggest hit yet and may now be in its dying throes.
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Nielsen Ratings Plummet
According to the latest report from Nielsen Media Research, the industry leader in tracking the popularity of television, cable and broadcast watching has dropped below 50% of all TV usage for the first time ever. That means that Americans watching TV via old-fashioned antennae and companies like Comcast are now in the minority.
Streaming TV usage has never been higher. Even worse for traditional TV, when you separate broadcast and cable into their own category, they rank at a mere 20% and 29.6%, respectively.
In contrast, streaming TV holds an overwhelming 38.7% market share of all user habits.
Clearly, cable and broadcast television is on its way out.
Disney+, Netflix, and the Rest
Much like cable and broadcast usage is divided between multiple networks and channels, streaming TV is a hotly contested field divided between Disney+, Netflix, Hulu, Apple TV, Prime Video, and others.
However, in that field, Disney+ and Netflix are leaders and direct competitors. When you combine the market share of Disney+ and Hulu (which is majority-owned by Disney, though perhaps not for long), the House of Mouse is actually beginning to outstrip the home of Stranger Things and The Witcher. When you have the entire Disney catalog, Star Wars, Indiana Jones, and Pixar on your side, there is a built-in advantage.
While every streaming platform is struggling to become the undisputed champion of the market, it’s clear that cable and broadcast are the losers here.
Where’s the Money?
Cable and broadcast are losing ground every year, but they also remain far more profitable than streaming, which is one reason Comcast remains one of the most powerful companies in the world.
But Disney and Netflix are paying more and more attention to streaming and trying to figure out how to make this ever-increasing stranglehold on TV profitable, whether it means raising subscription prices, pushing more ads, or just straight-up getting into sports gambling.
One thing seems certain: broadcast and cable better figure out something to do about cord-cutting and fast.
Do you still use cable and broadcast TV services? Let us know in the comments below!