In early 2012, the CEO of Home Box Office (HBO) referred to the cord-cutting movement as nothing more than a “fad.” Fast forward 14 months and the “fad” is not only still relevant, but growing at a rapid pace. According to a 2012 study conducted by GFK Media, nearly 21 million households now receive TV programming exclusively through broadcast signals rather than cable or satellite.
Pretty startling statistics, wouldn’t you say?
In addition to receiving content over-the-air, many cord-cutters are supplementing their viewing experience with a streaming service such as Netflix or Hulu. As the subscription totals for these platforms continue to rise, Hollywood executives are beginning to view these outlets as an alternative way to distribute original programming.
The producers of the Netflix original program, House of Cards, opted to go with Netflix over HBO because they felt the streaming service not only provided a better avenue to reach their audience, but afforded the viewers the luxury of being able to watch the entire season at their own convenience.
Additionally, Netflix will be bringing back the critically acclaimed comedy series, Arrested Development. Once again, Netflix beat out a cable network (Showtime) for the rights to broadcast the new season. The producers chose Netflix over Showtime because—according to Netflix data—that is where their target audience resides.
Amazon has also jumped into the original content pool. In April, the online retailer posted 14 original pilots, asking viewers to choose their favorite. This will, in turn, give the audience more control over their viewing experience, thus creating a stronger connection the program.
Sound Off: What do you think about Netflix and Amazons foray into original programming?