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Traditional television has been on the decline for years, but the continued economic fallout from the Covid-19 pandemic will make cord cutting even more pronounced, according to new research from the firm MoffettNathanson.
By 2024, traditional linear pay TV subscribers are expected to decline by 27 million, down to less than half of all occupied U.S. households, according to the research. U.S. consumer spending on traditional TV is expected to decrease by $23 billion from 2019 to 2014, bringing consumer spending on linear TV down to $76 billion in 2024—a low last seen in the industry during the 2008-2009 financial crisis.
“While the ultimate economic impact from COVID-19 remains uncertain, one thing we do believe is that this crisis will accelerate shifts in the media landscape,” analysts Michael Nathanson and Craig Moffett wrote.
The report underscores a point that early streaming entrants like Netflix, Hulu and Roku have emphasized again and again as pandemic-related shutdowns prompted sky-high streaming viewership: The pandemic’s wide-ranging effects will only speed up the steady consumer shift to streaming.
“Moments like this often accelerate some of the emerging trends that were already in motion, and that’s what we expect to continue to see,” Roku director of ad programming and research Dan Robbins told Adweek in April.
MoffettNathanson has unsurprisingly predicted a “meaningful uptake” of subscription streaming services over the next several years: U.S. consumers will spend about $22 billion more
Read more here: https://www.adweek.com/tv-video/covid-19s-economic-fallout-will-accelerate-linear-tvs-collapse/