Spending on streaming video to beat pay TV for the first time in 2024

U.S. viewers will spend more on streaming video than pay TV for the first time in 2024, according to the latest research from Strategy Analytics.
Consumer spending on video streamingConsumer spending on traditional pay TV services fell by 8 percent to $90.7 billion in 2020 and will decline further to $74.5 billion in 2023.

Spending on streaming services such as video-on-demand and internet-delivered subscription TV rose by 34 percent to $39.5 billion in 2020 and will reach $76.3 billion in 2024, passing pay TV for the first time.

Pay TV will account for only 40 percent of spending on video and TV services by 2026, compared to 81 percent ten years earlier.

Pay TV still commands much higher monthly revenues from its declining base of customers than from any single SVOD service. Pay TV revenues will shift further away from legacy pay TV as more households add new SVOD services while cutting the pay TV cord.

Michael Goodman, Director, TV & Media Strategies, said: “The fact that viewers are willing to divert an ever-increasing share of their entertainment wallet away from pay TV and towards new internet-based services demonstrates that the future lies with streaming video services rather than legacy pay TV players.”

Latest

More like this
Related

YouTube strategies for growth and monetization in emerging markets

Samuel Nkwam, analyst at Omdia, in a report, has...

How Netflix leads in user retention in streaming services

User retention has become a critical factor in determining...

DirecTV to acquire EchoStar’s Dish TV amidst Pay-TV struggles

DirecTV has agreed to acquire EchoStar’s satellite TV business...

China’s streaming market booms due to 5G network investment

The Chinese streaming market stands out due to investment...