Streaming on its way to overtake pay-TV
Streaming will overtake pay-TV in terms of US consumer spending by 2024. Pay-TV services fell by 8% in 2020, totaling USD 90.7 billion and the decrease will continue, with pay-TV spending at USD 74.5 billion in 2023, according to a forecast from consultancy Strategy Analytics.
Streaming increased 34% in 2020 to USD 39.5 billion. By 2024 that number is expected to be USD 76.3 billion when for the first time streaming is expected to be bigger than pay-TV.
The company forecasts that pay-TV will account for 40% of spending on video and TV services in 2026, down from the 81% ten years earlier..
“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,” said Michael Goodman, director, TV & Media Strategies for Strategy Analytics. “This is a long-term transition, but there is no doubt that the writing is on the wall for pay TV as we have known it for more than 40 years.”
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