Streaming services are destroying TV’s $65B ad game
Netflix, Amazon and Hulu Plus are no longer just nibbling away at the fringes of the pay-TV business — they’re eating its lunch.
Americans sick of watching ads or tired of ever-increasing pay-TV costs, the traditional cord-cutters, are beating an ever-larger path toward streaming services, an annual survey of TV viewing habits revealed on Wednesday.
Netflix — in no surprise to many media-savvy families — is now in 36 percent of US households, the Nielsen survey found, as pressure mounts on the $80 billion cable, satellite and telecom pay-TV industry.
The streaming darling also is forcing Madison Avenue to rethink how it allocates the $65 billion it spends on TV ads each year.
What’s more, those dollars are going to be increasingly up for grabs as other video-streaming services, like HBO Now and Sony’s PlayStation Vue, become available.