Streaming Video – The Future of Television?
Is streaming ads the next stage of TV marketing evolution? It certainly seems to be the case. Consider some of the following evidence.
2 out of 5 households in the US are already subscribing to at least one streaming service, and many of those households decided they just couldn’t choose. Netflix, Hulu, and Amazon Prime are the big three. Each offers unique content, albeit Prime and Netflix often have similar free shows. Hulu sets itself apart by airing current content.
The real dramatic change in recent months is the influx of made-for-streaming TV shows. The 2015 Emmy nominations were given out to 48 different networks. Netflix original shows took 6th for most nominations and received only one less nod than Fox. In fact, other than HBO, no other station received more than 42 (compared to Netflix which received 34). Amazon Instant Video (Prime) received 12 nominations. Streaming services don’t just have original shows; they have some of the best shows on TV.
Google, Apple, and Amazon have all released devices to compete with the Roku. The fact is that streaming devices are a great way to turn a dumb TV into a smart TV instantly. Suddenly, you have access to Netflix, Hulu, and tons of other streaming services. And it’s not just TV. These devices can also be used to stream music. It looks like streaming is the future of radio too.
There hasn’t been a bandwagon like this in a while. It seems like every network has decided to produce a streaming app, each with different rules that restrict what shows can be watched without some membership or login that proves a user has a TV provider. It makes for some frustration when it comes to finding your favorite show and discovering what hoops you need to jump through in order to watch it. This seems to be the one weak link in the streaming take over.
What This Means for Marketers
Before you start prepping your next service for streaming ads, it is important to note that the majority of streamers are between the ages of 18 and 34. In fact, once you hit 55 and over, the number using a streaming service drops rapidly. In fact, viewers age 45 and up are still primarily watching broadcast TV. It is also interesting to note that the number of women who prefer streaming TV online still outnumber the men. Finally, and perhaps most significantly, streaming video is preferred in lower income houses, and the number of streamers drops off quickly in homes that gross more than 75k per year.