New PwC Report Casts Doubt Over Cable’s Future

Feeling the Effects of the Videoquake

The “tremor” threatening traditional television viewing has turned into a “quake,” according to a new PwC report looking at changes in video content consumption.

Streaming services like Netflix have added new shows to the content diet of older Americans, but they haven’t usurped cable. But for younger viewers, “alternatives are slowly chipping away at cable — and on their way to replacing it entirely,” according to the report.

Cable subscriptions among viewers aged 18 to 24 dropped to 71% in 2014, down 6% from the year prior, according to PwC. The cable subscription figures are steadier for older demographics, but notably, 58% of 50 to 59 year-old pay TV subscribers had Netflix in 2014, up from just 19% in 2013.

A full 71% of pay TV subscribers aged 25-34 had Netflix in 2014, up from 51%.

But consumers of all ages are doubting they will be cable subscribers in the years to come. While 91% of viewers said they see themselves subscribing to cable in one year, 61% said they would likely subscribe in five years, and only 42% said so for 10 years.

Meanwhile big media players like CBS and HBO have recently announced their own streaming services.

The report, titled “Feeling the Effects of the Videoquake,” sampled 1,024 consumers through an online survey.

While the report might stoke fears among TV networks, it also will be of note among film companies. Binge-watching high-quality shows like “The Walking Dead” and “House of Cards” gives viewers a cinema-like experience at home, with 73% of viewers saying that, more and more, watching TV is as good as going to the movies.

However, the report also highlighted the existential dread that comes with picking a show to watch: 71% of consumers said the amount of available TV content is overwhelming.

(more on this and the original article by Steve Perlberg here)