Sitting down in front of the television has been one of the most popular leisure activities of the past 50 years. We all remember rushing home from school to catch our favourite show on the box or waiting each week to catch up on the next installment of our favourite series. However, with the introduction of streaming platforms like Netflix and Hulu, those days are well and truly gone as now can watch TV whenever and wherever we like. So, does this signal the end for TV packages as we know them? Let’s find out!
What are TV Packages?
Traditional TV service providers have always relied on a subscription model to keep their customers tied into their services. Cable and satellite companies across the world, like Sky, Verizon, and Virgin still follow the same model they always have by offering lengthy contracts of 12 to 24 months. These services often require installation, contracts, and a lot more. Streaming services are now making these lengthy packages obsolete, and we would recommend looking into those that are available and comparing them against your current package. Want to find out more about OTT streaming services? Then read on.
Are Streaming Services Taking Over?
The short answer is yes. We only need to look at the meteoric rise of Netflix in the past few years to see how popular streaming services are becoming. There are a few reasons for the increase in popularity of the platform, but essentially it is because of 3 things, flexibility, on-demand viewing, and changing behaviours of consumers. Let’s look at these individually to see how TV packages compare.
Flexible, On-Demand TV Viewing
The ability to watch our shows whenever we want has driven the rise in the platforms. We can now watch the latest episode on our commute or catch up with the latest news over breakfast. Our viewing habits have changed because we have everything at our fingertips. Want to watch a full series over one weekend? No problem, you have the power and control to do that. We don’t need to wait for when we’re told to watch that. TV and Satellite providers need to change their offering to connect with a younger audience and introducing a streaming service as part of their packages is one way that some have been going to appeal to that group.
Changing Behaviours
We have already looked at the changing behaviours of a younger audience and how TV is consumed, and this is the main driver in the switch from traditional TV packages. However, we also need to consider changing behaviours for the younger generation in how they like to pay. The need to be tied into long-term contracts is slowly drifting away, with the monthly subscription model now the payment method of choice for future generations. This change in behaviour could spell the further demise of TV packages unless they start to change. We can see that happening with some larger providers. Take SKY and Now TV for example; they offer a slimmed down version of their packages for a monthly fee, and more should follow that model.
What does the Future Hold?
We think there will always be a need for TV packages but the way they are structured will need to change. The offering and subscription model needs to cater to a new audience type and will need to be structured to meet the demands of a younger generation. TV, in general, is here to stay, there is no question of that, but the way we consume television is changing rapidly, so there are exciting times ahead as companies look to innovate and adapt to this changing market.