Americans Spend $2 Billion/Month On Video Streaming
Last updated September 24, 2021
- Americans are spending nearly $2 billion every month on video streaming services.
- Over 55% of all American households have subscriptions on at least one of the popular video streaming platforms.
- The preference for video streaming services over pay-TV is prevalent amongst Gen Z, Millennials, as well as Gen X audiences.
A recent report published by Deloitte is showing the current growth of the media streaming industry. During the last couple of years, companies like Netflix and Hulu have been on a steady rise. However, the report has unveiled that Americans will spend more than $24 billion on media streaming in 2018.
Likewise, Deloitte's 2018 Digital Media Trends Survey also noted a drop in pay-TV subscriptions. Currently, only 63% of all American households have a Pay TV subscription, compared to 74%, back in 2016. The decline is most pronounced amongst the demographic between 14 to 51 years of age. 22% of the millennials (people between ages 21 to 34) have also commented how they never even subscribed to a pay-TV service.
At an intuitive level, it is somewhat understandable that Gen Z (aged 14-20) prefers streaming service over paid-television. The executive director of Deloitte’s Center for Technology Media, and Telecommunications - Dr. Jeff Loucks has commented that millennials might prefer video streaming now, but as they grow older they would “settle down and watch pay TV.” However, even Gen X (aged 35-51) are approaching streaming services with great enthusiasm.
Image Courtesy of Geek and Sundry
Deloitte thus coined a new term for the video streaming demographic as “MilleXZials,” a combination of Gen X, Millennials, and Gen Z audiences as all of them present a similar attitude towards streaming services and pay TV.
Kevin Westcott, vice chairman and U.S. media and entertainment leader for Deloitte commented, “Consumers now enjoy unparalleled freedom in selecting media and entertainment options and their expectations are at an all-time high,[...]The rapid growth of streaming services and high-quality original content has created a significant opportunity to monetize the on-demand environment in 2018.”
Other than this, the survey reveals that the number of binge-watchers is at an all-time high. It is also noted that Pay-TV users are unhappy regarding the high subscription costs. On the other hand, video streaming service users are concerned about their limited control over personal online data.
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