Linear television seems to be holding its ground against streaming platforms more than expected. According to a recent study, its usage has only slightly declined over the past three years. Is the streaming market becoming saturated?
Despite the wide array of streaming platforms available, traditional television remains popular among the audience. A large majority of 81% of viewers in Germany predominantly watch linear television, according to a study by the consulting firm Deloitte. This is only slightly lower than three years ago (83%).
On the other hand, Deloitte experts see the end of the rapid growth phase for competing streaming platforms. Nearly two-thirds (64%) of German households have subscribed to a streaming service, the same as the previous year and slightly less than during the pandemic year of 2022.
The basis of this year’s “Media Consumer Survey” by Deloitte was a survey of 2,000 consumers regarding their television and video consumption habits. The annual Media Days, one of the most important industry meetings in Germany, will begin in Munich this Wednesday.
In the study, “predominant” television consumption means that the viewers spent more than half of their viewing time on traditional television programs. Only 19% of respondents reported spending more than half of their viewing time on “video consumption outside of traditional television.”
Television has proven to be “enormously resilient” in light of the numerous video alternatives available, according to the study authors. They highlight the live nature of television, its convenient use as a “background medium,” and the loyal viewership among older age groups as advantages of linear TV.
The study points to initial signs of saturation in the streaming market. “The tremendous growth that video-on-demand services experienced during the pandemic has now slowed down,” said Sophie Pastowski, one of the authors. However, even though user numbers are not increasing, the survey shows that every other streaming customer is watching more than last year.
Moreover, the study observes “provider hopping”: subscriptions are only held temporarily. In the survey, nearly 10% of participants reported both subscribing to and canceling a streaming service in the past year. “Competition for screen time and budgets of TV and video audiences will become even more intense in the future,” stated Pastowski.