Study Reveals How Netflix Is Reshaping the Entertainment Economy

Jun 5, 2018  •  Post A Comment

Streaming giant Netflix is “forcing traditional TV players to cannibalize their business models as music, VR and even box office are poised for big gains,” according to The Hollywood Reporter, which cites the just-released annual report from PricewaterhouseCoopers.

The report indicates that the traditional TV and home video market will fall in the U.S. for a third consecutive year, a trend that is expected to continue at least through 2022. The continued decline is attributed largely to Netflix, along with other streamers such as Amazon, YouTube and Hulu.

“Traditional TV and home video, which includes pay TV subscriptions, DVD rentals and sales, and VOD, appears to have peaked in 2015 at $110.3 billion,” THR notes. “This year, it will hit $102.5 billion and will sink to $96.1 billion in 2022, according to the study. Netflix-inspired cord-cutting is the culprit, says the research firm, noting that at the end of last year, 73 percent of U.S. households subscribed to a cable, satellite or telecom TV service, down from 79 percent in 2015.”

The repot adds: “To keep subscribers, legacy TV needs to spend on premium content, but it’s getting increasingly difficult to compete with the digital upstarts, with Netflix spending $6 billion last year while Amazon spent $4.5 billion.”

We encourage readers to click on the link above to THR to read the publication’s in-depth report.


  1. Legacy TV’s biggest issue, even before content, is the cable and satellite companies and how high the fees are for carriage. Most people pay well over $100 a month for that delivery. For that money Netflix and Hulu are cheap, and Amazon is free if your a prime member. And you will be able to add Disney’s new service and still be saving money. If you check out Directv Now, AT&T’s new service, you can see exactly how the cable and satellite companies are gouging. That is an over the air service charging $35.00 for what is considered basic cable. And you can watch it anywhere – on your phone, TV, computer, tablet or laptop.

  2. Traditional TV’s biggest issue, even before content, is the outrageous prices that the cable and satellite companies are charging. Most households are paying well over $100.00 per month. Amazon is free if you are a Prime member. Add Hulu and Netflix and whatever the new Disney network will cost and you will still be well under $100.00. Check http://www.directvnow.com and you can see why the cable company’s are having their cords cut. It is only $35.00 a month to get the channels on basic cable and you can watch them on your phone, tv, computer, laptop or tablet.

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