Netflix CEO Says regular broadcast TV will be dead in 16 years as more people choose digital versus cable.
During a speech made on Monday in Mexico City regarding Netflix’s growing presence in Hispanic countries, CEO Reed Hastings explained how broadcast television will soon be outdated. According to The Hollywood Reporter, Hastings argued “broadcast TV will probably last until 2030,” painting broadcast TV as “kind of like the horse — you know, the horse was good until we had the car.”
Hastings has been arguing that the end of TV is near. In April 2013, the CEO argued that internet TV will soon replace “linear TV.” in the year and a half since the CEO has made those claims, HBO, Showtime and CBS are all planning standalone apps, while Dish Network is preparing an Internet pay-TV service featuring bundles of Disney owned programs such as ESPN and A&E.
Cable networks typically make their money based off of ad revenue. However, in the past 10 years only 2011-2012 did cable networks experience any growth. As a result, advertisers are predicted to increase their spending on digital platforms such as YouTube rather than cable channels.
In addition, Netflix CEO Reed Hastings argued that Nielsen’s ratings system is outdated and not “very relevant” because the rating system does not take into account mobile video consumption. Netflix is known for not revealing viewership numbers for their original programming. In 2012, Netflix asserted that disclosing ratings “creates a benchmark that is irrelevant to the business but sexy and exciting to write about and puts a lot of performance pressure on shows that otherwise will be great shows over time.”
Hastings did not reveal what data leads him to beleive broadcast networks will end by 2030. But, his vision is not alone. Cisco Systems conducted a study in 2011 on the future of television and discovered conventional TV viewing will end by 2030.