Television feels the pain of netflixisering – Financieele Dagblad (Registration)

Ten billion hours there last quarter to Netflix looked. That equates to more than 905 million seasons of House of Cards, wrote a fan of this acclaimed political drama series this week on Twitter.

The rise of the US video service Netflix is ​​impressive. In the first quarter of last year, the number of viewer hours 6.5 billion, in 2013 it was still only around 4 billion. The growth is a sign that loses the traditional way of watching TV land. More and more people are embracing all kinds of possibilities look back on the Internet or ask them in movies and series on providers of video-on-demand.

Substitution

Lang has the television industry thought that watching these services on top of the normal TV viewing took place . However great was the shock when analysts of the renowned Bernstein Research last year showed that the minutes that were moved were paid less in the United States to traditional TV services to subscribers on the Internet. So there is talk of a substitution effect.

Traditional TV companies follow this development closely. The advancing internet video services relish not only on viewers, they also put the traditional business model is under pressure. Netflix does not sell advertising blocks, for decades the lifeblood of commercial TV companies.

Alternatives

Print media such as newspapers and magazines have been given by emerging alternatives on the Internet to process a big blow. Revenues were down there very hard, ran away because readers and advertisers shifted their budgets.

So hard, it is not in the television sector . There is for example in the Netherlands again last year earned more with TV commercials and sponsorships and product placement yielded more, following declines in 2012 and 2013. Ennel van Eeden PwC, an annual Entertainment & amp; Media Outlook composes surprised about that. “It is attractive to watch ad-free and we get used to it. There are programs such as The Voice, Farmer Looking Woman and football that draw viewers to the tube. The ads around those programs are expensive. The rest cheaper

Powerful medium

‘Tv-advertising the past thirty years has been a very attractive market, “says Mathijs Robbens, partner at consulting firm Bain. Volumes and prices continued to rise in most Western markets. This shows how powerful the television medium, and how few alternatives have been there for advertisers. The question is whether that success is maintained. The linear watching TV shows for the first time declined particularly among young people, this trend is significant. Simultaneously Internet platforms becoming stronger. They go themselves more as a source of valuable video content and substitutes of TV channels.

According to Bernstein is a matter of time that the pressure at TV companies will increase. There are now with YouTube and Facebook videos or alternatives, which in contrast to previous years, can absorb the television dollars. Moreover, there ‘every day’ new Internet platforms at, as Bernstein recently stated, “who build services around advertising opportunities that advertisers want.”