Financial Impact of Streaming Video on Traditional Television

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Streaming video does have legislative implications. Net neutrality is on the horizon. It would set price controls on Internet bandwidth. Net neutrality would force providers to equalize web traffic. This would mean a much slower internet connection for video streaming. If this takes place then the video streaming experience would suffer or force the providers to increase cost in order to provide the faster connection.

Today’s digital consumer is changing. Younger Americans are watching less TV than older people. The latest study from Nielsen’s states that the 18-24 year age group watched 2.5 hours less per week than the year before. Over the last three years, viewing by this age group dropped more than five hours per week. This is because this age group is more tech savvy and uses the latest electronics to view media. Only the group of viewers age 65 and above increased its television viewing. According to Russ Crupnick, NPD industry analysis senior VP, “ Over half the viewers for streaming TV are between the ages of 18 and 34, so the YouTube generation is evolving from short-from and user-generated content to TV shows and .like YouTube, they can watch where and when they want.” (Tarr)

An interesting phenomenon is taking place concerning television. Fewer households actually have a television. Even though phones and smaller devices cannot stream exceptionally fast, their usage has skyrocketed. Forty percent of people who access YouTube use a mobile device. Fifty –seven cities in America offer free internet. Many coffee shops, libraries, motels, etc. offer free Wi-Fi. The more businesses that offer free Wi-Fi, the more likely people will be within a Wi-Fi hotspot. (Edwards)

In an article written by Larry Magid, he states:

My son and daughter, both in their 20s, are part of a growing group of people who have “cut the cord” and no longer watch video via broadcast, cable or satellite TV. The apartments they live in are among the more than five million U.S. homes that, according to a recent Nielsen study, have “zero TV.” That’s up from just over 2 million in 2007. (Magid)

CONCLUSION

Streaming video has certainly changed how viewers view media. It has definitely affected traditional television in many ways. It has mixed up the playing field.

While older people tend to continue to increase their television viewing, younger people are moving away. In some cases, American households do not even have a television any more. The television networks have had to reconsider the way they operate in order to stay profitable.

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WORKS CITED

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