Netflix’s Growth Helps Streaming Eclipse Cable Subscriptions

(Bloomberg) -- The headlong rush of entertainment consumers toward streaming-video services like Netflix Inc. has left traditional cable subscriptions in the dust.

The number of subscriptions to online-video services jumped 27 percent to 613 million last year, according to the Motion Picture Association of America’s annual report. That put the global number of streaming customers above those of cable companies for the first time.

The movie industry has begun to adapt to the new realities by embracing streaming services: Netflix joined the six major Hollywood studios as a member of the MPAA in January. But it hasn’t been a smooth transition. Netflix has clashed with Hollywood traditionalists over how long award-caliber movies should play in theaters -- an issue that divided the industry when “Roma” was nominated for a best-picture Oscar this year.

Even with the shift toward online video, traditional movie theaters enjoyed a rebound in 2018. The typical moviegoer bought more tickets last year, and attendance was highest among younger people -- an optimistic sign for the industry. The total number of theatrical screens worldwide increased by 7 percent and China’s box office grew to $9 billion, according to the MPAA report.

Total spending on home entertainment in the U.S. increased 12 percent to $23.3 billion. Americans now spend just over half of their media time on a digital platform.

To contact the reporter on this story: Anousha Sakoui in Los Angeles at asakoui@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards III

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