Netflix, Amazon Lead Digital Streaming, but Is the Space Too Crowded?
The digital streaming video space is exploding. Some 68 percent of U.S. television viewers now use a streaming subscription service to watch TV shows and movies, compared to 41 percent in 2014, according to Hub Research. And there are plenty of players in the space: Netflix (NFLX); Amazon (AMZN) Prime Instant Video; Hulu Plus; Time Warner’s (TWX) HBO NOW; CBS’s (CBS) Showtime; Apple’s (AAPL) iTunes; Sling; Vudu and Google (GOOG) Play among others. But is that too many? ‘I don't think there are too many right at this minute, but I think we're getting to that point where we're bumping up against consumer's budgetary constraints,’ said Paul Verna, senior analyst at eMarketer. The costs add up, especially if you're a fan of 'Orange is the New Black' on Netflix, 'Game of Thrones' on HBO and 'Homeland' on Showtime. Netflix and Hulu Plus cost $7.99 a month. Amazon Prime costs $8.25 a month, which includes Amazon Prime Instant Video. HBONow runs $14.99 while Showtime costs $10.99. The average pay-TV cable bill stands at $123 a month, according to NPD Group. In 2015, the streaming space will generate revenue of $6.4 billion in the United States. That number is set to jump to $12.6 billion in 2019. TheStreet’s Scott Gamm reports from New York.
