The ongoing frenzy behind online video streaming continues to be a point of concern to the existence of Cable TV networks that have been in existence since memorial. Netflix, Inc. (NASDAQ:NFLX) continues to gain a great deal from the tech savvy generation that continue to prefer content available online, which they can watch while on the go.
During an interview on Bloomberg, Jonathan Wilner of Ooyala reiterated that traditional media’s will continue to be under pressure with the development of more handheld devices. There is an ongoing debate as to whether in the coming future people will cut out the cable completely and go for the services currently offered by the likes of Netflix, Inc. (NASDAQ:NFLX).
“I think the trend is coming on like a game buster; what we saw even in the last quarter was that 30% of growth was on mobile. Thin that is powered by big large screen devices like the iPhone 6’S and 6 plus coming into the market. People are really comfortable watching more and more of their basic television watching on the go wherever they are,” said Mr. Wilner.
Audience consumer behavior is definitely changing according to Bloomberg’s senior media analyst, Paul Sweeney, with people opting for online video programming offered by Netflix, Inc. (NASDAQ:NFLX) and other video streaming services. CBS Corporation (NYSE:CBS) is already making an aggressive push into the video streaming space as more people continue to prefer content available online instead of having to stick with the cable content.
“I think a lot of the media companies are saying we need to go where our consumers are going, and they are going online. However, that is not where the economics are today; the economics today are still with traditional Pay TV bundle. We need to make sure we don’t cannibalize that core business,” said Mr. Sweeney.
Distribution of content remains key for long-term survival of some of the cable networks according to Mr. Wilner. Double distribution of content both on cable and online should come into play if the Pay TV networks are to survive the mounting pressure coming from the likes of Netflix, Inc. (NASDAQ:NFLX).
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