12.1 Cord-cutting and shifting viewer preferences

Cord-cutting and changing viewer habits are shaking up the TV world. As people ditch cable for streaming, networks are scrambling to keep up. High costs, better internet, and cool new shows on streaming platforms are driving this shift.

Networks are feeling the heat from falling viewership and ad money. They're racing to create their own streaming services and change how they make shows. It's a whole new ballgame, with viewers calling the shots on what, when, and how they watch.

Cord-cutting's Rise and Impact

Economic and Technological Drivers

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Top images from around the web for Economic and Technological Drivers

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  How good are Canadian streaming video services? – Arvin Singla – Medium View original

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  Cord Cutting - Cutting the Cord from Traditional Cable TV … | Flickr View original

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  Netflix Streaming | Cord-cutting, Living Room, Netflix, Netf… | Flickr View original

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  How good are Canadian streaming video services? – Arvin Singla – Medium View original

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  Cord Cutting - Cutting the Cord from Traditional Cable TV … | Flickr View original

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• Cord-cutting involves viewers canceling traditional cable or satellite TV subscriptions for streaming services or alternatives
• High cost of cable packages and affordable streaming options contribute to cord-cutting's rise
• High-speed internet proliferation and improved streaming technology make cord-cutting viable for many consumers
• Content exclusivity and original programming from streaming services attract viewers away from traditional networks
• Streaming platforms offer flexibility and convenience of on-demand viewing, altering viewer expectations

Impact on Traditional Networks

• Traditional television networks experience declining viewership due to cord-cutting trend
• Reduced ad revenue puts financial pressure on networks to adapt their business models
• Networks face increased competition from streaming services for audience attention and content rights
• Shift in viewer habits challenges networks' traditional programming and scheduling strategies
• Networks must invest in digital infrastructure to remain competitive in the evolving media landscape

Changing Viewer Preferences in the Digital Age

Evolving Consumption Habits

• Binge-watching (consuming multiple episodes in one sitting) becomes prevalent with streaming platforms
• Time-shifted viewing through DVR or on-demand services reduces importance of traditional TV schedules
• Mobile device usage increases, leading to rise in short-form content consumption (YouTube shorts, TikTok)
• Multi-platform viewing experiences become common (watching on TV, tablet, and phone)
• Personalization and content recommendation algorithms influence how viewers discover new programming
• Social media integration creates second-screen experience, affecting audience content interaction (live-tweeting)

Shifting Content Preferences

• Viewers increasingly prefer ad-free or limited-ad experiences, challenging traditional advertising models
• Demand for niche content and diverse representation grows, influencing programming decisions
• Interactive and immersive content experiences gain popularity (Black Mirror: Bandersnatch)
• Short-form content sees increased engagement, especially among younger audiences (Quibi's attempt)
• User-generated content platforms compete for viewer attention (YouTube, TikTok)
• Cross-platform storytelling and transmedia narratives attract engaged audiences (Marvel Cinematic Universe)

Network Adaptation Strategies

Digital Platform Development

• Networks create specific streaming platforms to compete with pure-play services (CBS All Access, now Paramount+)
• TV Everywhere initiatives allow cable subscribers to access network content across multiple devices
• Networks produce exclusive and original content for digital platforms to attract and retain streaming viewers
• Adoption of data analytics and audience measurement tools inform content decisions
• Experimentation with release strategies caters to changing viewing habits (simultaneous streaming and broadcast premieres)

Partnerships and Innovation

• Networks form partnerships with tech companies and social media platforms to expand distribution channels
• Collaboration with device manufacturers ensures compatibility and optimal viewing experiences
• Investment in interactive and immersive content experiences creates unique value propositions
• Exploration of virtual and augmented reality technologies for innovative content delivery
• Development of second-screen applications enhances viewer engagement and interactivity
• Partnerships with influencers and content creators to reach younger demographics

Cord-cutting's Implications for Television's Future

Evolving Business Models

• Revenue models shift from traditional advertising and cable fees to subscription-based and hybrid strategies
• Industry consolidation occurs as networks seek scale and content libraries to compete with major streaming players
• Success metrics redefine to encompass engagement, subscriber retention, and cross-platform performance
• Networks focus on direct-to-consumer relationships, developing new marketing and customer retention capabilities
• Potential disaggregation of network bundles leads to more à la carte content offerings
• Content production and distribution strategies evolve to balance linear television and streaming audience needs

Technological and Market Trends

• Emergence of new technologies (5G, augmented reality) reshapes how networks deliver content
• Artificial intelligence and machine learning enhance content recommendations and personalization
• Blockchain technology explores new ways of content rights management and royalty distribution
• Virtual production techniques (LED walls) transform how television content created and produced
• Integration of social features within streaming platforms fosters community engagement
• Exploration of interactive storytelling formats blurs lines between traditional TV and gaming experiences