Netflix is killing traditional television -- well, kind of. Over the past five years, Netflix has emerged into a serious competitor to cable TV. As more and more people are “cutting the cord,” specialized OTT services like Netflix are becoming increasingly appealing. In this day in age, people want to watch television on their own time, so Netflix on the rise because it allows viewers to consume media anytime and anywhere. According to Nielsen's presentation to our class, TV ratings are on the decline even though TV viewership remains stable. This is due to streaming platforms like Netflix, whose subscriptions climb with each passing year. People are still consuming TV, they are simply consuming it differently than before.
As the graph below shows, Netflix has seen incremental growth over a short amount of time. Cable, on the other hand, is gradually losing subscribers. These are the cord cutters, and 73 percent of them said they are subscribing to Netflix (Risen).
Netflix has some distinct advantages over traditional TV. A big one is the ability to bingewatch. TV shows have usually been set up as one episode per week, but Netflix allows for viewers to watch an entire season in one sitting if they’re so inclined. And now, viewers can watch original Netflix shows that are of equal quality as those on networks. Some Netflix originals are even winning awards, like Master of None and Orange is the New Black. Producers of Netflix shows have the luxury of not worrying about TV ratings because Netflix keeps them private. This lets them construct shows without limitations. Netflix also doesn’t have to compete with primetime TV because you can watch it any time (Cannata-Bowen). Because those reasons and more, people are leaning towards “Netflix and Chill” instead of “CBS and…,” well -- CBS doesn’t have a cool little saying like that.
Netflix revives television shows. For example, Arrested Development. Initially airing on Fox, Arrested spent three seasons on traditional television until it was cancelled. Then, the seasons were put up on Netflix and the show’s cult following caused Netflix to produce its fourth season. Now, Netflix is thinking about making a fifth season. Fanship is so important now and viewers have more of a voice than ever before due to social media. This opportunity for revival wasn’t possible just ten years ago. A show’s fate relied heavily on Nielsen ratings.
Cable is certainly an appealing option for those seeking broad choices. But, as I stated before, it is no longer the only place to see original programming. Netflix, Yahoo, Microsoft, Amazon, and Hulu are all producing exclusive shows available through their sites. People are consuming on multiple channels now more than ever, and these OTT services accommodate that movement better than cable. People are spending a lot of money to buy tablets, TVs, and smartphones where they can watch media on. After the introduction of the Ultra HD television, Netflix’s CEO said his company got “incremental revenue without making any changes” (Fool). Netflix charged $11.99 a month to stream Ultra HD content, which is about $3 more than the standard subscription. They figured that if a customer pays thousands for the Ultra HD TV they will spend a few extra dollars for Netflix to access 4K content. And they were right.
If you couldn’t already tell, I believe that Netflix is dominating the TV game right now. I believe that cable will be around for awhile, but it will just look a lot different in the future. Specifically, I think that it will lose most of its original content to streaming platforms. If a show doesn’t need to be seen at a specific time, it can and will be streamed. What will be televised will be news, sports, debates, game shows, award shows, reality shows, and event-based programs like those. These are shows that you want to tweet right away about. Shows that you don’t want spoiled. These are the types of programs that are still thriving on television. Discovery Channel had its best year ever in 2015 because of the introduction of its new reality shows Racing Extinction and Naked And Afraid: XL. The channel OWN also had a 12% viewership boost due to “strong performances from the likes of House Hunters” (Patten). Reality shows are the reason that many channels are still doing so well. Also, television events like award shows are critical to TV viewership. There are some programs that you want to watch with other people -- or at least communicate with other people via social media -- and these will still be on cable or network television. Shows that you don’t necessarily need to watch with others that don’t have to be watched at a specific time will be delegated to OTTs like Netflix.
What do you guys think? How do you watch television now, and how do you think you will watch television in the future?
Works Cited
Cannata-Bowen, Nick. "Netflix vs. Cable TV: 6 Ways Netflix Is Winning." The Cheat Sheet. N.p., 27 Sept. 2015. Web. 12 Feb. 2016.
Fool, Motley. "5 Things Netflix, Inc. Management Wants You to Know -- The Motley Fool." The Motley Fool. N.p., 27 Jan. 2015. Web. 12 Feb. 2016.
Heisler, Yoni. "The Netflix Effect: Fewer Viewers Are Opting to Sign up for Cable in the First Place." BGR. N.p., 08 Oct. 2015. Web. 12 Feb. 2016.
"Newswire ." Tops of 2015: TV and Social Media. N.p., 8 Dec. 2015. Web. 12 Feb. 2016.
Patten, Dominic. "Cable Ratings 2015: Fox News Rides GOP Debates Almost To Top, Discovery & AMC Rise, A&E and MTV Down." Deadline. N.p., 22 Dec. 2015. Web. 12 Feb. 2016.
Risen, Tom. "Comcast, Netflix and the Death of Cable." US News. U.S.News & World Report, 16 July 2015. Web. 12 Feb. 2016.
LINKS:
Noordsy Part 1
ReplyDeleteI have a cable television in my bedroom at school. I also have my MacBook where I watch shows on my cousin’s Netflix account. It seems ironic but I utilize my MacBook to “watch TV’’ over my actual TV.
One of the main reasons I prefer watching shows on Netflix is the lack of advertising. Most of us can agree that advertisements take away from the enjoyment of watching our favorite shows and are just a general pain. The ability to fast forward through commercials on live TV would be beneficial to us all.
Another reason I prefer Netflix is the fact that Netflix creates original content that can’t be found on live television. Shows such as Orange is the New Black and House of Cards “helped Netflix quickly gain credibility as a distributor of original content. As a result, Netflix now has excellent access to new show ideas that are being pitched” (Levine-Weinberg). The creation of these original shows gives me access to more options for shows to stream, which is great considering I just finished Nurse Jackie and am about to finish The Office. It is clear that Netflix wants its users to be satisfied and have numerous shows to choose from when they finish other series.
Additionally, Netflix is convenient. When there is free time for me in between classes and I don’t want to head back to my dorm, I will find a cozy spot in the student center, plug in my earphones to my laptop, and choose something to stream on Netflix. I am not bothering anyone around me with the noise since I am using earphones and I can still enjoy whatever it is that I am watching. However, if I were to sit in front of a TV somewhere in the student center and turn the volume up on Bravo or TLC, I think I would get some dirty looks.
According to a recent survey of more than 2,000 American consumers by ClearVoice Research, almost half of these consumers “spent more time watching Netflix than traditional television. Viewer hours devoted to Netflix are also swelling, with the average global subscriber watching Netflix 1.9 hours per day, or a jump of almost one-third from a year earlier” (Picchi). This statistic just adds to the fact that Netflix is increasing in popularity by the day and will play an important role in the future of television.
I will say, my TV viewing habits are quite different when I am home. Often times, I will sit down at the kitchen table near our small television and turn on the Today show, Ellen, Bravo, or TLC and watch with my mother. At night, the nightly news is almost always on with Lester Holt or Scott Pelley. We also have a flat screen television in our living room that has Netflix, YouTube, Amazon Prime, and other applications. When my mother comes home from work or my brother comes home for lunch, Netflix is turned on. There is an equal balance of streaming and live television being used in our house.
Noordsy Part 2
ReplyDeleteAn investment banker by the name of Terence Kawaja has a similar stance on the future of cable television to my stance on the future of cable television. He does not think that traditional TV is dying, or about to be killed by digital media. Kawaja says, “TV spend shows no sign of slowing down. Linear television, the one everyone says is going to die, is a growth industry. In fact, television is growing more in absolute dollars than the size of the entire digital video industry” (Yarow).
While streaming services are obviously popular, live television is definitely not on its way out the door. We watch live television during big events like the Super Bowl or the presidential inauguration and watching events or shows live can bring excitement and joy to not only ourselves but also to our friends and family watching with us. I most definitely will always utilize Netflix when it is necessary and when I don’t feel like leaving my bed but live television also has its positives. Yes, streaming is convenient and serves its purpose but where would we be without live television?
Works Cited:
1. Levine-Weinberg, Adam. "5 Things Netflix, Inc. Management Wants You to Know -- The Motley Fool." The Motley Fool. N.p., 27 Jan. 2015. Web. 14 Feb. 2016.
2. Picchi, Aimee. "Is Netflix More Popular than TV?" CBSNews. CBS Interactive, 16 Apr. 2015. Web. 14 Feb. 2016.
3. Yarow, Jay. "An Investment Banker Made This Epic Presentation On The Future Of TV." Business Insider. Business Insider, Inc, 06 July 2014. Web. 14 Feb. 2016.
While I can’t make any indications as to whether to not Netflix is ‘killing’ cable television, I do believe it’s causing some sort of shift in the industry as a whole. Being that I’ve never been too personally invested in cable television, I did always find that waiting for my favorite shows to air was fairly tedious. There was something about waiting for your weekly show to air that made the rest of your week seem insignificant. With that, if the episode, which you had so patiently anticipated, was not to your liking, the entire week seemed somewhat wasted.
ReplyDeleteSince participating in Netflix, my viewing of television and movie entertainment has changed significantly. Because being away at school also makes live television difficult to keep up with, Netflix provides the perfect alternative to ‘individualize’ my consuming experience. This trend can be compared and contrasted with the ‘time-shifting’ of cable television. An article from Nielsen states, “today’s consumers continue to dictate their own programming schedule by time-shifting content when they want it.” (Nielsen).
As consumers begin to transition to this ‘personalized’ form of viewing entertainment, I think companies like Netflix are benefiting in a multitude of ways. Not only is Netflix able to capitalize through their monthly subscription rate, but I also believe they are slowly (but surely) establishing their brand through quality original content. The Motley Fool quotes Netflix Chief Content Officer, Ted Sarandos, “On the original side, it’s a very competitive market, and we are, fortunately, in a position ourself as a premier destination for the biggest and best projects.” (Motley Fool).
The word quality is somewhat hard to come by, especially in regards to entertainment whether movies or television. Hollywood has adopted what I’ve come to understand as the ‘cookie cutter’ mentality of pumping out films; essentially using the same formula of blockbusters to generate similar returns of investments. While this strategy is successful from a monetary standpoint, I think it is doing much harm in relation to creativity within entertainment. With ratings of cable television from companies such as Nielsen, I would think it’s incredibly difficult for new producers and shows to break out of the mold for what has already been established. Companies like Netflix allow such mold breaking, and with this, I think it’s quite possible to see a shift from cable to streaming services, as well as a shift for more quality content.
‘Death’ aside, some individuals see a different outcome with regards to the television and entertainment industry. Investment banker Terence Kawaja notes, “digital and linear are on a crash course to converge. And, (naturally, as a banker) he believes there will be a lot of mergers and acquisitions that will bring the two together.” (Business Insider). With our knowledge of media conglomerates, I think this explanation may be more feasible for the shift that’s occurring. Conglomeration and consolidation has been occurring for generations and I don’t see it slowing down any time soon. With that, this shift may simply be better defined as a transitional phase as opposed to a ‘death’.
Works Cited:
Levine-Weinberg, Adam. "5 Things Netflix, Inc. Management Wants You to Know -- The Motley Fool." The Motley Fool. N.p., 27 Jan. 2015. Web. 14 Feb. 2016.
"Newswire ." Tops of 2015: TV and Social Media. N.p., 8 Dec. 2015. Web. 12 Feb. 2016.
Yarow, Jay. "An Investment Banker Made This Epic Presentation On The Future Of TV." Business Insider. Business Insider, Inc, 06 July 2014. Web. 14 Feb. 2016.
Growing up, cable television was all I watched. I remember sitting in on the couch with my family ready to watch the schedule programming of Survivor on Monday nights at 8pm or Friday Night Lights Tuesday nights at 9pm. If we knew that we would miss the show that night for any particular reason, we would use the VCR to record it or, nowadays, we use our PVR. Netflix wasn’t something I used or even heard of until I came to college. Now, I rarely watch cable television. The only times I really do sit down and watch it is for award shows, such as The Grammy’s or The Oscars, or sporting events such as NHL games or the Super Bowl. The odd time I will sit down and watch The Bachelor with my roommates but those are really the only times I will watch something on cable.
ReplyDeleteSince coming to college, Netflix has been my outlet for watching television shows and movies. I think the main reason I watch it so frequently is simply because of its convenience and original programs. Since joining the site, I have watched original series such as Bloodline, Orange is the New Black, and Making a Murderer. I was skeptical to watch these series at first because I didn’t know what kind of quality shows I would be watching. According to 5 Things Netflix Inc. Management Wants You To Know, the original content of the company has been a success and “as a result, Netflix now has excellent access to new show ideas that are being pitched” (Levine-Weinberg). I figured Netflix would only be used to watch previous shows that had already been developed and aired on traditional television but clearly I was wrong.
The site has so many options for shows and movies and provides the viewer with the option of “binge-watching” their favorite show. It also eliminates the hassle of watching commercials and dealing with constant advertisements. The few times I watch cable television, I always get annoyed with commercial interruptions. So much so that, if I’m home, I’ll PVR a show so I can watch it the next day and fast-forward through the commercials. I think the convenience of Netflix is what has drawn so many people in to the site and pushed people away from watching traditional television as much as before. Do I think traditional television will die off and only streaming options will be available? Absolutely not. People still heavily relay on traditional television for sports and awards shows. As we talked about in class, last years Super Bowl was the most watched television event in history so clearly people still use this media outlet. Jay Yarow writes that “he believes that digital and linear are on a crash course to converge” (Yarow) meaning that somehow traditional television and digital media, such as Netflix, will someday be brought together. I think it’s nice for society to have the option of watching traditional cable television and also watch things streamed on services such as Netflix.
Works Cited:
Levine-Weinberg, Adam. "5 Things Netflix, Inc. Management Wants You to Know -- The Motley Fool." The Motley Fool. 27 Jan. 2015. Web. 15 Feb. 2016.
Yarow, Jay. "An Investment Banker Made This Epic Presentation On The Future Of TV." Business Insider. Business Insider, Inc, 06 July 2014. Web. 15 Feb. 2016.
I’d have to 100% agreed that the way we watch television is drastically changing, and has been since the start of DVR. When I was young, I still remember getting the TV Guide in the mail once a month, and sifting through it to see what time my shows were going to be on, and when. A few years later, I remember getting a new cable box that showed me what channel shows were on right on the TV, as well as being able to record them to watch later. To me, this was amazing, and it couldn’t get any easier. I could be more flexible, sure I had to be in front of my TV to watch my show, but at least I could on my time. And then, we got the streaming service Netflix, and I will never go back.
ReplyDeleteThe cable packages we know today are slowly becoming obsolete. People just want to pay for what they want to watch. As the class article Suddenly, Plenty of Options for Cord Cutters explained, there are literally tons of ways to customize your television watching experience, from ordering stations a la carte (HBO Now, Showtime) or getting streaming services like Hulu and Netflix. They just make it so easy. Why pay for 300 stations I’m not going to watch, to be forced to work my schedule around the 1 hour my show is on, while dealing with commercials. I could pay the same money for Netflix, and watch every episode of any show of my choosing from the roof of my house if I felt like it. That’s the beauty of streaming services, its all about you. Your shows, on your schedule, on whatever device you want, wherever you want.
So basically there are two competitors, Cable TV and Streaming. They both have shows you love and they both create original content. So why do we still think about Cable? Well, they have two advantages. Sporting events, and 24-hour news cycle. Basically, the only way you can watch live news channels, either local or global, are through a cable subscription. The same goes for most live sporting events, except the occasional that’s streamed online. Many people, myself included, enjoy having the news on in the background from time to time, or watching it while I enjoy my breakfast. Sports is another animal with millions of die hard viewers that pay for cable packages just so they can have their beloved sports. HBO dabbles in the sporting industry with boxing and other similar events, but no streaming service has picked up sporting events, or even worked on some sort of news station. So for that reason, I believe cable currently has the upper hand, but not for long. Eventually, sports and news with go with the flow of streaming, and then cable will really be in a big dilemma.
Marechal, A.J. "Watching Live TV Vexes the On-Demand Generation." Variety 27 Sept. 2013. Web.
Steel, Emily. "Suddenly, Plenty of Options for Cord Cutters." New York Times 3 June 2015. Web.
I agree that Netflix has definitely shifted the way people watch television. With the lives we live, binge watching is a huge advantage that Netflix and other streaming services have. Not only can you watch at whatever times you want but also for however long you want. Last week we spoke about our demand for things and the idea that we want things to be instant, and this aspect of Netflix fulfills those wants of instant gratification. “No one is forced to wait, a week to watch a 42 minute show peppered with almost 20 minutes of commercials, making Netflix the easy choice over network TV,” (Bowman).
ReplyDeleteBUT, do I think cable will eventually disappear? No. For me personally, there are tons of competitions and “storytelling” shows like ABC’s The Bachelor, TV Land’s Younger, etc. that I enjoy watching at that specific time live because it is routine and social media will spoil nothing. “It’s wonderful watching or reading something for the first time and having no idea what is going to happen,” (Gingermostly). That is to me, the best part of live television. To answer your question of how I watch television now, in a house of six girls, we have one cable box in our living room and I have Apple TV in my bedroom. The cable television is always on and almost all the time, there is more than one person watching. However, Apple TV doesn’t allow for live television other than Sports Center. So that is where Netflix comes into play. If you know what you want to watch, Netflix is easy, otherwise, I find myself searching for a longer time than I would like to and end up giving up. Maybe I am bias to live television because I grew up watching cable and getting attached to certain shows.
I do agree with you that the amount of cable content will decline in the future. If networks do not come up with new programs, their re-runs of old shows will be sold into streaming services. Think back to when we were babies and how much television changed then to now. I have no doubt that television will continue to rapidly grow and expand, while becoming smaller at the same time (if that makes sense). I’m excited to see how cable will strive to stay alive and if streaming services will take an extra step to get rid of cable as a whole or if that will be determined by viewers.
Gingermostly. "KINDLY SHUT IT – A RANT ABOUT SPOILERS (DOES NOT CONTAIN SPOILERS…)." Gingermostly. N.p., 1 Dec. 2014. Web. 15 Feb. 2015.
Jarvey, Natalie. "Netflix Launches in 130 More Countries, Reed Hastings Says." The Hollywood Reporter. N.p., 6 Jan. 2016. Web. 15 Feb. 2016.
As an avid television watcher, I have a very strong opinion about the cable vs. streaming debate. I will start off by saying how much I love streaming services such as Hulu, Netflix, and HBO. It is a great feeling coming home at the end of a busy day knowing that that there is a show guaranteed to be on and I am able to watch as much or as little as I want for however long I want to. It is totally personalized! The numbers don’t lie, streaming services are increasing while traditional cable and live TV is in the decline. Streaming services are also very smart in the way that they position themselves in the market. Netflix is beginning to use a solid strategy that includes raising, “…the price of its default package by $1 for new subscribers last year, while letting existing subscribers keep the old $7.99/month rate for two years. While Netflix is becoming more confident in its pricing power, the company still doesn't want to raise its prices every year, or even every other year” (Fool, 2015). With a cheap and easy payment package paired with new shows with no commercials, why would anyone use cable?
ReplyDeleteThere are however, many people (such as myself), who still enjoy watching cable television. When I watch television, it is my form of release. It is a time where I can take myself out of my own life and put myself in someone else’s life. My absolute guilty pleasure (as I mentioned in class) is reality television. I have an immense curiosity about the ways in which famous or wealthy people live their lives and although it is partly scripted, I do find it very entertaining. My obsession, however, does not lead to the point where I would stream these shows and watch in my spare time. I love to just throw them on because they are playing constantly or even use them as background noise. In terms of socializing, getting together with friends and watching shows such as the Bachelor or American Idol is a weekly routine. The issue with streaming these shows after they have aired is that social media spoilers ruin the suspense and part of the fun. A blogger writes, “It’s wonderful watching or reading something for the first time and having no idea what is going to happen. That is something you only get to do once” (Gingermostly, 2014). There is something to be said about watching a scandal happening on live television and not really knowing exactly what is going on, but seeing it right when it happened instead of watching clips on YouTube.
In my opinion, the satisfaction a person gets from watching cable will not fade. What I do agree with is how important it is for cable services to constantly show new content and new ideas. There have been many times where I find myself turning to Netflix because I cannot find something I feel like I haven’t seen before on cable. Although other media outlets are becoming increasingly popular do to the busy lives that people live and the little time had to watch television, I do not think cable will ever disappear. In this day and age, it is nice to be able to choose what media you want to watch, and how you want to watch it based on what best suits your lifestyle.
“5 Things Netflix, Inc. Management Wants You to Know." The Motley Fool. 27 Jan. 2015. Web.
“Kindly Shut It - A Rant About Spoilers." Gingermostly (blog). 1 Dec. 2014. Web.
- Amy Levine
I think that you make some good points in your argument of original cable content being replaced by streaming platforms. I agree that streaming has some great advantages over cable. For example, I have a subscription to Netflix and I can watch specific shows at any time during the day. It’s all about convenience for me. When I come home from school and make myself dinner, I like to watch Netflix as I eat. Rather than waiting for a show to air at a specific time on cable, I can watch Mad Men at any time of the day and as many episodes as I want. That is the beauty of streaming, all the episodes are right in front of me and I don’t have to wait another week for an episode to air. Another advantage is being able to binge watch shows. When ‘Master of None’ premiered on Netflix, I binge watched the entire show within the first three days it was released. On cable, I flip through the channels to see what’s on, not to binge watch a show at 8 p.m. (unless it was a Harry Potter movie marathon on ABC Family now known as, Freeform).
ReplyDeleteHowever, I don’t think that traditional TV content on cable is going to just disappear in the future. Just like the representatives of Neilson said, traditional TV viewing is decreasing but at a lower rate of decline. When I’m flipping through cable channels, I watch ESPN or I flip through channels for some comedy show. But this past fall I tuned in to AMC to watch the premiere of The Walking Dead. Cable is not dead because AMC proves that they can gather an audience to watch original content on cable. According to an article in Deadline by Dominic Pattern, “With The Walking Dead plus the additional attention around the end of Mad Men, the cabler came in with an average audience of 1.381 million, up 4% over last year and put AMC at No. 10 overall in primetime.” This was a big year for AMC being the first time it has been in the top 5 in 18-49s. The day I tuned in to the premiere of The Walking Dead (one of the most watched cable shows of 2014) on October 11, it was the highest entry that wasn’t a football or a GOP debate (Pattern, Dominic). Our age group may be watching more Netflix and other streaming platforms than cable but we must not forget other age groups when measuring ratings. According to the Neilson representatives, children ages 2-4 watch more TV than any other age until they are 30 years old. So it is important to notice that Disney Channel finished the 2015 year as the most-watched network in total day, topping Nickelodeon for the first time ever, thanks to Descendants (O’Connell, Michael). The movie drew in 12.2 million viewers which was the year’s most-watched on cable.
Overall, I don’t think that cable TV will be completely replaced by streaming in the future. If cable were to be completed replaced by all these streaming platforms, people wouldn’t be able to afford every single platform. I think that cable will be able to survive as long as they engage their target audience which clearly AMC and Disney Channel did successfully to two different age demographics.
Works Cited
O’Connell, Michael. “Cable's Key Takeaway: Franchises and Familiar Faces Win 2015.” The Hollywood Reporter. 31, Dec. 2015. Web. 16 Feb. 2016.
Patten, Dominic. "Cable Ratings 2015: Fox News Rides GOP Debates Almost To Top, Discovery & AMC Rise, A&E and MTV Down." Deadline. N.p., 22 Dec. 2015. Web. 16 Feb. 2016.