After the Cord Cut: The Next Big Streaming Shake Ups

Cord cutting has become a norm, Hulu just won an Emmy, and Netflix is a Millennial obsession. What happens next? The next big streaming shake ups are right around the corner…

It’s official: The cord cutting scales have finally tipped. More people watch streaming services than have cable, according to a recent survey of U.S. internet users. As Ypulse’s Media Consumption Tracker has shown for some time, Millennials and Gen Z have been ahead on this trend, and are currently consuming far more content on YouTube and Netflix than cable. And Netflix is also gaining ground on cable as viewers’ first choice for watching shows. While most Americans are still turning to live TV programming for their viewing, 19% now say their “default” source for programming is Netflix, up from 15% last year. The study from Hub Entertainment Research found that Netflix is the first choice for 50% of 16-24-year-olds—not surprising considering the site’s hold on Millennials. Ypulse research has found that almost seven in ten 18-34-year-olds use Netflix to watch video content weekly, and Netflix is the top “channel” they report watching shows on regularly.

So, not only has cord cutting become a norm, the services making it possible are becoming the preference. The explosion of original content from SVOD (streaming video on demand) providers in recent years has changed the game, making Hulu, Amazon, and Netflix more than under-the-radar annoyances for major networks—they’re now the big rivals in the room. Heck, Hulu just won an Emmy for Best Drama Series. It’s a new era, and one that many never thought would arrive. So, what happens after the cord cut? There are more streaming service shake ups right around the corner—here are three big ones:

1. SMARTPHONE STREAMING IS THE NEW FRONTIER

Streaming is the norm with…

 
 

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The Newsfeed

Quote of the Day: “Being famous is overrated. I would be more happy [sic] being locally known for the good I do in the world in a popular way but not for the wrong reasons.”—Female, 16, UT

Minecraft is being used to get kids interested in reading actual, real books. Litcraft recreates the world of a book as an interactive Minecraft map, adding “educational tasks” throughout. Treasure Island was the first completed world, followed by Kensuke's Kingdom, while The Lord of the Flies and Dante’s Inferno are in the works. Trials at U.K. schools are being met with “an enthusiastic response,” so Litcraft is eyeing a larger rollout. (The Guardian)

Nordstrom is stocking up on Instafamous brands like Allbirds, Everlane, and Reformation. The company announced that “strategic” brands account for about 40% of their current revenue and that’s expected to rise. While they benefit from indie brands’ popularity with young consumers, the direct-to-consumer brands are getting an expanded physical footprint, too. In the case of Reformation, Nordstrom explains that they “can bring sustainable fashion to a new (and much bigger) group of customers and closets.” (Business Insider)

A baseball team struck out with their “Millennial Night” promotion, putting Twitter in an uproar. We’ve warned brands that making fun of Millennials is not the way to get earn their spending power, and minor league baseball’s Montgomery Biscuits learned the lesson first-hand. Their “Millennial Night” offered participation ribbons, selfie stations, napping areas, and “lots of avocados,” while playing into stereotypes about Millennials being lazy. A Biscuits exec explains that “Something got lost in the sarcasm,” but instead of offering an apology, they doubled down with another cutting tweet. (AdweekInc.)

Nearly half of Millennials think that “their credit scores are holding them back.” OppLoans found that 27% of 18-34-year-olds haven’t been approved for a new car because of their credit while 25% have been declined for an apartment or house. Debt, a top financial concern for Millennials, is partly to blame: 15% said that their debt “is unmanageable.” Education could help dig them out of the hole, as 24% feel they’ve never learned how to build good credit. (Moneyish)

Baby Einstein is growing up for Millennial parents with a new mission and campaign. Their “Ignite a Curious Mind” effort goes after parents, not kids, with short spots that encourage curiosity. They’re also working on new toys, moving beyond their “sweet spot” of zero to 12 months for toddlers. Baby Einstein’s parent company, Kids II is also planning on reworking other brands, like Bright Starts and Ingenuity. (Ad Age)

Quote of the Day: “[American Eagle Outfitters’] clothes are generally what I wear and are my style. They're comfortable and affordable. They do not do a great deal of vanity sizing and offer something for guys and girls of every size.”—Female, 23, GA

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