IRVINE, Calif., June 01, 2021 (GLOBE NEWSWIRE) -- As cautious optimism grows that the very worst of the pandemic is behind rather than ahead, the search is on for the “new normal” that will bring some much-needed consistency, stability and familiarity to what has been a staggeringly — and for many traumatically — unpredictable period. Yet according Plutos Sama Holdings Inc., a private equity focused on distressed assets, there is an aspect of the post-pandemic landscape that is a cause of concern rather than comfort for cable and satellite service providers: the massive consumer migration to online streaming services is just getting started.
“Cord cutting has been going on for several years,” commented a spokesperson from Plutos Sama Holdings Inc., which takes control positions in domestic and international distressed and contentious residential and commercial real estate ventures, micro-lending, securitizations, law firms, restaurants, mortgage servicing platforms, and eSports. “For example, in 2009 just 10 percent of consumers subscribed to streaming services, but that surged to 69 percent in 2019. The pandemic accelerated this shift, with approximately six million households dropping cable in 2020 — making it the worst year ever for cable TV. And by 2024 an estimated 46.6 million consumers, which is more than a third of all U.S. households, are expected to join the cord-cutting movement.”
There are several integrated factors driving this sea change in consumer behavior: choice, quality, access, and cost.
With respect to choice, consumers — especially digital natives — are pushing back against bloated one-size-fits-all cable and satellite channel bundles that fail to fit their preferences, and embracing the freedom to curate a customized streaming line-up.
“The irony is that for decades cable and satellite providers have been constantly adding new channels in order to keep consumers on the roster, and of course to justify ongoing rate increases,” commented a spokesperson from Plutos Sama Holdings Inc. “But many consumers are somewhere between bored and annoyed with having hundreds of channels to wade through; the vast majority of which they are not interested in, never asked for, and would certainly not pay for if given the choice. Streaming gives these consumers an unprecedented — and highly satisfying — degree of power. They can pick-and-choose the platforms and tiers that they want, and ignore those that they don’t. And even if in the bottom-line cost savings for some cord-cutters is negligent — for example, in the past they may have been paying about $50 a month to a cable provider, and now they’re paying roughly the same amount for various streaming services — they still come out ahead because they are in control, and that makes a big difference to their viewing experience and enjoyment.”
As for quality, when streaming services first arrived on the scene, providers touted convenience and cost-savings more than original programming — because there wasn’t any; at least, nothing that came close to rivaling mainstream networks. But now, not only are streaming services loaded with original programming, but the quality is certainly ready for primetime.
“In 2013, Netflix ushered in a new era when House of Cards became the first original online-only streaming series to receive a major nomination for an Emmy Award,” commented a spokesperson from Plutos Sama Holdings Inc. “Since then, the quality and selection of original programming has continued to increase, as has the number of streaming providers — including the noteworthy explosion of European studios that have, due to the pandemic, now become mainstream in the U.S. For example, the Spanish crime-drama Money Heist has generated a cult-like following, and millions of Americans are binging on and raving about shows from Norway, Sweden, France, Finland, and the list goes on. This is attracting more viewers and, not surprisingly, investors as well.”
When it comes to access, streaming has a competitive — and frankly, categorical — advantage that conventional cable and satellite providers cannot deliver: the ability to easily watch programming from a variety of wired and wireless devices.
“With steaming, consumers can not only curate their line-up, but they can decide how, when, and where to watch programming,” commented a spokesperson from Plutos Sama Holdings Inc. “For example, someone can start watching a show on their living room TV, switch over to their tablet in the kitchen, and then finish up with their smartphone in bed. It’s a level of convenience and mobility that was basically unthinkable a couple of decades ago, but is now becoming the standard; especially among millennials who already have this level of flexibility and empowerment when they’re using cloud-based apps, games and tools at work. Adding TV and movie programming is an extension of this lifestyle expectation.”
And with respect to cost, research has found that a primary motivation for some consumers — particularly those 30 and older — to say farewell to cable and satellite providers is to save money. Separate research has found that about a third of U.S. households with cable pay between $51 and $100 per month, and nearly 60 percent pay $101 a month or more.
“For millions of individuals and families, the pandemic has dialed up financial anxiety even beyond what was experienced during the Great Recession that erupted in late 2007,” commented a spokesperson from Plutos Sama Holdings Inc. “Even people who habitually resisted putting together a budget are crunching the numbers and separating essential from inessential needs. In many households, cable and satellite services fall into the latter bucket; particularly when they analyze how small of a reward they’re getting for their money. By switching to streaming, they significantly cut their home entertainment bill, plus they get the benefits of customization and multi-device access. Simply put, they get more for less.”
About Plutos Sama Holdings, Inc.
Plutos Sama Holdings, Inc. is a private equity company in the business of taking control positions in domestic and international distressed and contentious residential and commercial real estate ventures, micro-lending, securitizations, law firms, restaurants, mortgage servicing platforms, and eSports. For more information, visit www.plutosholdings.com.
Media contact: info@plutossama.com
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