by Kevin Coupe
Fascinating data from Nielsen saying that for the first time, traditional television viewing - broadcast and pay TV, described as "linear TV" - dropped below 50 percent in July.
According to the story, "Usage among pay-TV customers fell to 29.6% of TV, while broadcast dropped to a 20% share during the month. Streaming made up nearly 39% of usage in July," the highest number it has yet achieved since Nielsen began tracking it.
CNBC writes that "Streaming companies have turned from using subscriber growth as a measure of success, and instead are pushing to reach profitability in the segment as the traditional TV business shrinks.
"Many consumers left the traditional TV bundle due to its steep prices. Now, streamers are also raising prices across the board — including Disney for ad-free Disney+ and Hulu subscriptions — in a bid to boost revenue." In addition, a number of streaming services are adding advertising tiers so generate additional revenue.
It is all further evidence about how traditional business models inevitably go into decline, replaced by new models, even those that have to adjust their approach as they seek profitability.
It happens in every industry. It is an Eye-Opener.