Video Killed the TV Industry-Star?

Over the past 10+/- years the television industry has gone the way of the music industry -- declines in viewership and ratings and increasing numbers of consumers cancelling their cable or satellite service. For the music industry it was the new wave of technology with Napster, .mp3s and iTunes; for the television industry it has been YouTube, Netflix and online video streaming websites.

Canadians are the highest users of online video streaming in the world, according to a poll released in October 2011 by comScore. Those affiliated with the University of Western Ontario can view this poll in chart form through our subscription of eMarketer.

Canadians also have increased their use of Personal Video Recorders from 6% in 2006 to 23% in 2010. Video on Demand websites (such as Netflix) have increased in Canada as well -- 6% in 2006 to 15% in 2010. The highest jump was in Internet Video -- 30% of English speaking Canadians used Internet Videos in 2006; in 2010 that number jumped to 51%. (eMarketer, Usage of Select Video Technologies..., 2011).

Streaming video hasn't only hurt the television and communications industry, it has also forced the bankrupcy of many once large movie store chains. As more and more North Americans are only viewing new releases through On Demand services such as Rogers On Demand and Netflix, in store chains are failing. The best example of this was the bankruptcy of Blockbuster LLC in 2010 and it's subsequent purchase by the Dish Network. According to the Dallas News, only 600 Blockbuster stores would remain open where there had once been over 4000.

Netflix has more than 20 million subscribers in the US and Canada and between the hours of 8 to 10pm, over 20% of Internet traffic is due to Netflix streaming video. (Social Times)

Similar to Neflix, YouTube (which is owned by Google) has helped in the decline of network television. Television advertising was only up 8% in 2010 whereas online video advertising was up 41%.

"In May 2010, it was reported that YouTube was serving more than 2 billion videos a day, which it was described as 'nearly double the prime time audience of all 3 major US television networks combined." (YouTube Killed TV)

References:

Dish network is trying to keep more than 600 blockbuster stores open | dallas-fort worth business news - news for dallas, texas - the dallas morning news Retrieved 1/16/2012, 2012, from http://www.dallasnews.com/business/retail/20110421-dish-network-is-trying-to-keep-more-than-600-blockbuster-stores-open.ece

How netflix bankrupted & destroyed blockbuster [infographic] - SocialTimes.com Retrieved 1/16/2012, 2012, from http://socialtimes.com/netflix-destroyed-blockbuster-infographic_b39812

Pay TV subscribers canceling service, going online Retrieved 1/16/2012, 2012, from http://www.marketingcharts.com/television/pay-tv-subscribers-canceling-service-going-online-20614/

Top 10 countries, ranked by online videos watched per viewer, oct 2011 - eMarketer Retrieved 1/16/2012, 2012, from http://totalaccess.emarketer.com/Chart.aspx?R=116329&dsNav=Ntk:basic|top+10+countries+ranked+by+online+videos|1|,Rpp:50,Ro:-1

Usage of select video technologies among consumers in canada, by native language, 2006-2010 (% of respondents in each group) - eMarketer Retrieved 1/16/2012, 2012, from http://totalaccess.emarketer.com/Chart.aspx?R=111755&dsNav=Ntk:basic|Usage+of+Select+Video+Technologies|1|,Rpp:50,Ro:0