A new study has given subscription cable channels a reason to panic. Thanks in large part to its focus on original programming and entire seasons of series, streaming service Netflix is growing. At the same time, subscriptions to premium channels are dwindling.
The Study
While Variety pointed out that the results of the study don’t necessarily indicate a trend, it’s understandable that they’d gain notice in a rapidly-evolving industry. The number of households subscribing to premium TV channels like HBO, Showtime, Starz, and others dropped from 38 percent in March 2012 to just 32 percent a year and a half later. For the same time period, the number of households watching TV via streaming services like Netflix, Hulu Plus, and Amazon Prime jumped from 23 percent to 27 percent.
Small numbers? Certainly. But the results shouldn’t be dismissed outright. One issue with the study is that consumers weren’t asked why they dropped the service. But the growing popularity of Netflix’s original programming has certainly gained notice, as evidenced by the network’s recent showing at the Golden Globes.
Pay Cable History
View attachment 2953 Many of us recall the beginning of cable. In the early 80s, the ability to watch movies at home that were in theaters only six months or so ago was a novelty. The fact that those movies were shown without commercials, with new releases featured every month, made it well worth the monthly subscription price.
Netflix isn’t the first service to offer original programming. In fact, from almost the beginning, both HBO and Showtime realized the value of producing and airing unique shows. In 1983, HBO aired its first original production, The Terry Fox Story, which was a biopic on a Canadian amputee who ran across Canada in a fundraising effort to benefit cancer research. Showtime, meanwhile, was busy on its own first feature. Falcon’s Gold was produced in Mexico and Canada specifically for the cable network.
Original Programming
In recent years, HBO and Showtime have been no slouches in the original programming department. HBO has given us such gems as The Sopranos, The Wire, and Curb Your Enthusiasm. Today, fans tune into the network to watch Game of Thrones and True Blood, although the latter will air its final season later this year. While Homeland and House of Lies are currently encouraging viewers to tune in, in past years, Weeds, Stargate SG-1, and The United States of Tara have brought subscribers back month after month.
Interestingly, what may also be hurting HBO and Showtime is its own programming. Netflix now makes available many of the series once only available on their respective networks. Granted, viewers are watching episodes of Weeds from several years ago, but these viewers don’t seem to mind the delay—especially when it means they don’t have to wait a week between episodes.
Judging by the negative reaction of premium subscription services to the news, they’re aware of the survey results. However, these networks may eventually begin to rethink whether or not they sell their shows to streaming services once a season or entire series has finished airing. After all, they could keep these old episodes to themselves and perhaps convince fans to stay.
The Study
While Variety pointed out that the results of the study don’t necessarily indicate a trend, it’s understandable that they’d gain notice in a rapidly-evolving industry. The number of households subscribing to premium TV channels like HBO, Showtime, Starz, and others dropped from 38 percent in March 2012 to just 32 percent a year and a half later. For the same time period, the number of households watching TV via streaming services like Netflix, Hulu Plus, and Amazon Prime jumped from 23 percent to 27 percent.
Small numbers? Certainly. But the results shouldn’t be dismissed outright. One issue with the study is that consumers weren’t asked why they dropped the service. But the growing popularity of Netflix’s original programming has certainly gained notice, as evidenced by the network’s recent showing at the Golden Globes.
Pay Cable History
View attachment 2953 Many of us recall the beginning of cable. In the early 80s, the ability to watch movies at home that were in theaters only six months or so ago was a novelty. The fact that those movies were shown without commercials, with new releases featured every month, made it well worth the monthly subscription price.
Netflix isn’t the first service to offer original programming. In fact, from almost the beginning, both HBO and Showtime realized the value of producing and airing unique shows. In 1983, HBO aired its first original production, The Terry Fox Story, which was a biopic on a Canadian amputee who ran across Canada in a fundraising effort to benefit cancer research. Showtime, meanwhile, was busy on its own first feature. Falcon’s Gold was produced in Mexico and Canada specifically for the cable network.
Original Programming
In recent years, HBO and Showtime have been no slouches in the original programming department. HBO has given us such gems as The Sopranos, The Wire, and Curb Your Enthusiasm. Today, fans tune into the network to watch Game of Thrones and True Blood, although the latter will air its final season later this year. While Homeland and House of Lies are currently encouraging viewers to tune in, in past years, Weeds, Stargate SG-1, and The United States of Tara have brought subscribers back month after month.
Interestingly, what may also be hurting HBO and Showtime is its own programming. Netflix now makes available many of the series once only available on their respective networks. Granted, viewers are watching episodes of Weeds from several years ago, but these viewers don’t seem to mind the delay—especially when it means they don’t have to wait a week between episodes.
Judging by the negative reaction of premium subscription services to the news, they’re aware of the survey results. However, these networks may eventually begin to rethink whether or not they sell their shows to streaming services once a season or entire series has finished airing. After all, they could keep these old episodes to themselves and perhaps convince fans to stay.
