THUNDER BAY – TECHNOLOGY – Changing technology is impacting traditional ways that people get news, entertainment and information.
Streaming devices like Apple TV, are allowing customers to gather information and news, and stream movies from Shomi, Netflix, Crackle, and the National Film Board of Canada.
The Battle for the North American (US/Canada) Couch Potato: Online and Traditional TV, and Movie Distribution report shares that across North America, people are watching more online television on streaming services than ever before.
Cord Cutting Customers Drop Cable Services
The report states that 2015 Canadian Cable, Satellite, Telco TV access provider subscription revenue grew 1% to $9.15 billion.
“2015 saw a decline of 190,000 Canadian TV subscribers, 2014 saw a decline of 105,000 TV subs, and we forecast a TV subscriber decline of 191,000 for 2016. As illustrated in our Canadian Cord Cutter/Never Household Model, 2012 saw the start of the rise in cord cutter/never households. As of YE2015 we estimate 3.43 million Canadian households (23.7% of HHs) did not have a traditional TV subscription with a Cable, Satellite, or Telco TV access provider, up from 3.1 million (21.7% of HHs) YE2014, and forecast 3.76 million (25.8% of HHs) YE2016. 2014 saw 251,000, 2015 saw333,000 and we forecast 334,000 2016 cord cutter/never household additions.”
Here in Thunder Bay, as Tbaytel continues to expand fibre-based Internet services with an unlimited bandwidth, it is entirely possible that the impact on the local market could see increased subscribers. Some of the major services have started to throttle Internet access and speeds.
The report, just released in April 2016 estimates Online Subscription (Netflix) represented 48%, VOD (Cable, Satellite, Telco TV) 27%, Store 17%, Online Transactional 8%, of 2015 Canadian Movie/TV Rental market revenue, and forecast Online Subscription (Netflix) 56%, VOD (Cable, Satellite, Telco TV) 24%, Store 12%, Online Transactional 8%, for 2016. They estimate Download Movie/TV sales represented 20% of 2015 Canadian DVD/Blu-ray/Download Movie/TV Sales.
The Canadian Radio Television Commission (CRTC) regulates television, radio, and Internet in Canada.
Earlier in April Jean-Pierre Blais, Chairman of the CRTC said, “Whether they are at work, at home or at school, communications services are more important than ever in the lives of Canadians. The Three-Year Plan is our commitment to Canadians that we will continue to put them at the centre of our conversations about the future of broadcasting and telecommunications in this country. We encourage Canadians to participate in our proceedings, so that we may ensure their communication system is meeting their needs and interests.”
Lower prices and slimmer cable packages are being offered. However it is entirely likely that consumers and technology companies will actually drive the marketplace, and regulation will follow to attempt to keep up.
Have you dropped cable in favour of streaming services like Netflix, Shomi, or others? Tell us your thoughts at newsroom@netnewsledger.com
