It appears the days of all things once classified as ‘traditional’ are no longer that. Ten years ago, you could show up to most people’s homes and expect that they would have your traditional cable or satellite TV on. Today, that may not be the case.
People are now using what is known as over-the-top, OTT, media services. It is a streaming media service that is offered directly to viewers via Internet. OTT users are referred to as “cord-cutters,” which is the term for a person who cancels or forgoes a cable television subscription or landline phone connection in favor of an alternative Internet-based or wireless service. It would make sense to believe that cable companies would be upset and struggling over this transition, but that is not the case. An internet connection is still required to use these streaming services that people are adapting to, and that is provided by your cable company.
We often hear that “no one watches regular TV anymore’ and everyone is cutting cable, but there are misconceptions on viewership. The current statistics show that traditional TV is still most viewed. Every day, over 85% of adults watch Broadcast & cable TV and people are viewing streaming channels in addition to watching traditional TV.
The top five OTT services by number of subscribers are (according to Adweek):
- Netflix
- Amazon Prime Video Users
- Hulu
- HBO Now
- Starz
45% watch YouTube, 34% watch Netflix and only 13% are watching Hulu. 71% of Internet users use an OTT service at least once a month with nearly 3 out of 4 people using their connected TV Devices daily. 65% of people who use a second screen while streaming has looked up info on a product that has been advertised in a TV show, so a combination of digital and TV is still a powerful marketing strategy!
OTT is everchanging. OTT is disrupting the industry for the better. As traditional TV continues to lose viewers, adults will use streaming apps and ad-supported OTT services like Hulu, CBS All Access, Sling, and Pluto.
By adding this new channel to your media mix, you have an unprecedented opportunity to target new audiences in new ways — and to do so ahead of competitors who are not as ad-savvy.
