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.