Netflix vs. Hulu vs. Cable TV: Online Streaming Services Surpassing Cable Providers but Users Sharing Accounts
According to a report on Business Insider, linear television has lost so much audience to online streaming buffets and services that the ratings have been severely effected. Even more, people are opting out of cable and satellite services for a buffet of programming they do not even use, and instead opting for cheaper services in the form of streaming platforms.
But, this has also led to an increase in account piggy-backers. Basically, that means people are logging into these streaming services with other people's accounts and watching their entertainment with a paid username that someone else owns.
According to a report by Dallas-based Parks Associates, more than 10 percent of households are using piggy-back subscriptions to view their shows and movies. This bootleg version though is not technically illegal, if the account's owner allows it, given that they allowed a certain amount of authorized users on streaming services such as Netflix.
The research by the firm has revealed that Netflix has an 11 percent piggy-back rate. Hulu Plus is close behind that number at 10 percent and Amazon Prime is at 5 percent. All of these aforementioned services are considered a buffet style streaming service, or "watch as much as you want."
The research also indicated that 22 percent of those numbers are with young persons aged 18-24.
Given the scrupulous nature of this activity, growth in this market and with these business' continues to expand at exponential numbers. As Business Insider points out, that can be largely thanks to the mass-departure of cable and satellite subscribers who are opting for a cheaper service that provides content that consumers actually want to see, when they want to see it.
Streaming video services have a multitude of convenience advantages over these industry originals, who mostly only offer linear options. Even their non-linear rentals are still paid via al a carte fees, which can be quite substantial.
The first quarter of this year has been quite a reversal for paid cable and satellite companies. This is usually the time when their growth is very strong. But for the first time ever, these companies have lost more subscribers than they have gained, which is a clear indication that linear TV is on its way out.
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