Disney's latest earnings report suggests that streaming services like Disney+, Hulu, and ESPN+ are becoming more profitable, potentially surpassing traditional linear TV. Despite past skepticism from investors like Warren Buffett, Disney's strategic reduction in content spending and subscriber growth have turned streaming into a viable business model. The company projects significant operating income from streaming in the coming years, indicating a shift in the media landscape as streaming becomes a stronger replacement for cable TV.
Paramount Global reported its second consecutive quarter of profit in its streaming segment, with a significant reduction in streaming losses compared to last year. However, overall revenue fell short of expectations due to continued declines in its linear TV and studio segments. The company is preparing for a merger with Skydance Media, expected in 2025, and aims for domestic profitability for Paramount+ by then. Despite streaming success, management anticipates a loss in the fourth quarter. Paramount+ gained 3.5 million subscribers, driven by sports and original content, and saw an 18% increase in streaming ad revenue.
Linear TV viewership experienced a slight recovery in August, accounting for 50.6% of total TV usage, with broadcast seeing its first gain since January. Variety programming and sports events contributed to the boost. However, compared to the previous year, linear TV viewing declined by 5.5% for broadcast and 10.6% for cable. Streaming remained the largest share of television at 38.3%, although it experienced a slight decline due to students returning to school. Peacock saw the largest increase among streamers, while Suits dominated streaming with the most minutes viewed.
The Walt Disney Co. and Charter Communications have reached a new carriage agreement, ending a blackout for millions of pay TV customers. Analysts have weighed in on the deal, with some seeing it as a win for both companies. Disney gains new distribution of Disney+ with ads to a majority of Charter pay TV subscribers, potentially generating additional revenue of around $400-500 million annually. ESPN will also see a gain in its viewer base, and the upcoming ESPN streaming service will have a built-in starting point on subs from Charter. Charter, on the other hand, will have access to Disney's streaming services for its broadband customers and will not have to carry certain Disney networks anymore. The deal is seen as a step towards a fully streaming future, but it remains to be seen how it will impact future carriage deals and the broader entertainment industry.
The Walt Disney Company and Charter Communications have announced a multiyear distribution agreement that restores the majority of Disney's networks and stations to Spectrum's video customers. The deal includes providing Disney+ and ESPN+ to Spectrum subscribers, as well as offering Disney's direct-to-consumer services to all Charter customers. Spectrum TV will now offer a curated lineup of 19 networks from Disney, including ABC, Disney Channel, FX, and ESPN. The agreement also emphasizes the commitment to combat unauthorized password sharing.
Linear TV viewing in the US has fallen below 50% for the first time, with cable usage dropping to 29.6% and broadcast usage decreasing to 20%, according to Nielsen's July 2023 report. Meanwhile, streaming services reached a new high, accounting for 38.7% of total TV usage, with YouTube and Netflix leading the way. Despite streaming's popularity, the average cost of top US platforms is set to exceed cable subscriptions this fall, leading to price hikes and prompting some users to turn to free ad-supported streaming TV services.
Linear TV viewing in the United States fell below 50% for the first time in Nielsen's tracking history, with broadcast networks accounting for 20% and cable networks for 29.6% of TV usage in July. Streaming reached an all-time high of 38.7% of TV usage, while the "other use" category, including video games and physical media playback, made up 11.6%. YouTube led as the top streamer with 9.2% of TV use, followed by Netflix at 8.5%. Acquired series like Suits on Netflix and Peacock contributed to the streaming surge in July.
Nielsen's monthly state of TV report reveals that for the first time, linear TV viewership accounted for less than 50% of all TV usage, with broadcast and cable representing record low shares of 20% and 29.6% respectively. Meanwhile, streaming viewership increased by 2.9% from June to July and now represents 38.7% of total TV usage, with Netflix's legal dramedy "Suits" contributing significantly to the increase. "Suits" broke Nielsen records with nearly 4 billion minutes viewed in just one measurement week, surpassing the viewing minutes of "Stranger Things" last July.
Linear TV viewing in the United States dropped below 50% for the first time in July 2023, according to Nielsen. Streaming services like YouTube and Netflix accounted for a record 38.7% of total TV usage, while cable's share fell below 30% for the first time. Broadcast usage also declined. Among streaming platforms, YouTube had the largest share of TV usage, followed by Netflix and Amazon Prime Video. The top streamed titles were "Suits" and "Bluey."
