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December 2, 2019 09:30 pm

Cord-Cutting Pushed To 'Tipping Point' as Video Streaming Grows

The media ecosystem is undergoing a massive change as streaming video looks to extend its recent dominance over traditional distribution, according to research firm MoffettNathanson, which wrote that a large minority of cable consumers could cut their subscriptions in coming years. From a report: "The video market is in full disruption and this year could be the cord cutting tipping point," analyst Michael Nathanson wrote to clients. "Media companies will need to master a whole new suite of skill sets to win going forward," with content creation, user interfaces and "churn mitigation strategies" among the factors that could determine the next generation of winners in the market. Consumers have been abandoning traditional media bundles for years, instead looking to services like Netflix or Walt Disney's recently launched Disney+ service, which has signed up more than 10 million subscribers since launching in November. Streaming services have made in-roads into a number of major categories of video entertainment, including TV shows and movies. In a measure of how big streaming has become, Wells Fargo Securities wrote that between November 17-23, "The Mandalorian," a series from Disney+ set in the "Star Wars" universe, was the "most in-demand show in OTT and overall on a linear+OTT basis." OTT stands for "over the top" content, which bypasses cable boxes. Linear TV airs at set times, as opposed to being on-demand, as with streaming.

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