Infographic: TV Is Steadily Sinking as OTT Skyrockets

Why advertisers need to pay attention to revenue numbers

Video editor: Breana Mallamaci
Headshot of Sammy Nickalls

There’s been plenty of hype surrounding the shift from traditional TV to over-the-top media services like Netflix and Hulu. However, new research cuts through the noise and shifts the focus to numbers, making it clear that no matter what advertisers say, the future favors OTT.

Since 2016, the number of TV subscribers in the U.S. has dropped from 97 million to an estimated 82.6 million by 2020, while OTT households have increased from 58 million to a whopping 96.1 million (also estimated in 2020), according to Convergence Research. Meanwhile, traditional TV revenue is projected to sink slightly through 2020, while OTT revenue saw a 41 percent revenue growth in 2017 alone.

Media companies are increasingly responding by creating their own OTT offerings, ensuring that they’re a part of the direct-to-consumer evolution. However, Brahm Eiley, president of Convergence Research, said that the advertising world “should be very concerned about OTT’s meteoric rise and the downturn in TV access subscriber eyeballs, especially since the largest providers of OTT do not, for the most part, offer advertising. Within a few years, OTT will be in more households than TV access.”

This story first appeared in the May 28, 2018, issue of Adweek magazine. Click here to subscribe.
@sammynickalls Sammy Nickalls is a freelance writer and the former departments editor at Adweek.