The number that Canadian households pay for at least one streaming video service will for the first time shake the traditional TV subscribers next year, forecasting the annual consumer habits report.
The Convergence Research Group says the growing popularity of streaming features – from Netflix and Crave to the DAZN sports platform – leads to a gradual shift where viewers are investing their entertainment money.
Brahm Eiley, President of Convergence Research, suggested that these shifting habits would cross the border by the end of 2020, as more streaming companies will be launched in Canada. He described the details in his Potatoes with a couch report on industry trends, released on Monday.
"If we look at things a year ago when compared to what we're now seeing, you're starting to see global platforms entering Canada, and that will only intensify in the next few years," Eiley suggested in an interview.
"The consumer begins to get more choices," he added.
Eiley has pointed to Apple and Disney as two major corporations planning to launch US transfer platforms later this year.
Both companies are expected to eventually put pressure on Canada, though Eiley expects that Disney will at least secure an agreement with the existing Canadian media house, just as Bell Media Cave carries HBO and Showtime programs.
A steady decline in traditional services
Traditional retail outlets, particularly cable and satellite in Canada, record a fall in subscribers of approximately two percent each year since 2015, the report says.
Last year, Canadian television subscribers dropped by 204,000 and another 253,000 are expected to be canceled this year, according to a report.
Canadian adoption of streaming offers was much slower than in the United States, partly because Canadians have less than half the streaming capabilities that Americans make, Eiley added.
This is one of the reasons why many households still pay for cable and streaming services, although this also changes. The report estimates that around 32 percent of Canadian households will not have a traditional TV subscription by the end of this year – an increase of around two percentage points since 2018.
Convergence research also estimates that Canadian revenue for streaming video services rose 33 percent to $ 1.12 billion, with forecasts to reach $ 1.51 billion in 2019.