In a groundbreaking moment for the entertainment industry, streaming is set to surpass traditional television in the United States for the first time. This shift is not just a cultural phenomenon; it has significant implications for various sectors, including real estate. Let’s delve into the details to understand how this change is shaping the way we live and invest.
Changing viewing habits
The numbers don’t lie
According to a study by Insider Intelligence, the average daily time spent by American adults watching digital videos will reach 3 hours and 11 minutes in 2023. In contrast, the time spent on traditional television (cable, satellite, DVD, etc.) will decline to less than 3 hours. And this data only accounts for adults!
Streaming services leading the way
The trend is expected to intensify, especially given the growing popularity of online videos among teenagers. Streaming services like YouTube and Netflix are at the forefront, each capturing 33 minutes of American adults’ attention daily. They are followed by Hulu (24 minutes), Amazon (11 minutes), and Disney+ (8 minutes).
Impact on real estate
Home design and infrastructure
The shift from traditional TV to streaming has implications for home design. With more people streaming content on various devices, the need for high-speed internet and smart home systems is increasing. This trend is influencing homebuyers to look for properties with advanced technological infrastructure.
Commercial real estate
The decline in traditional TV viewership also affects commercial real estate. Television studios and broadcasting centers may see a decrease in value, while data centers and locations ideal for streaming servers could become more valuable.
Role of social media apps
TikTok’s rising influence
The TikTok app, whose usage skyrocketed during the pandemic, is also eating into the market share of both traditional TV and streaming services. According to the same study, TikTok has already surpassed other social media platforms and YouTube in terms of time spent by adult users. On average, American adults will spend more than 45 minutes per day on videos across social networks this year, marking a 9.3% increase.
Twitter’s struggle
Elon Musk, the CEO of Twitter, is attempting to encourage more video content on the platform, especially from YouTube creators. However, these efforts may be in vain if Twitter cannot stem the decline in its user numbers.
What this means for real estate investors
Investment in tech-savvy properties
For real estate investors, the rise of streaming over traditional TV suggests that investing in properties with up-to-date technological infrastructure could yield higher returns. Features like high-speed internet, smart home systems, and even home theaters are becoming more appealing to potential buyers and renters.
Location considerations
The locations of data centers and streaming servers may also become critical factors for commercial real estate investments. As the demand for streaming services grows, properties near these centers could appreciate in value.
Conclusion
The shift from traditional television to streaming is not just an entertainment trend; it’s a societal shift with far-reaching implications. From home design to commercial property values, the rise of streaming is reshaping the real estate landscape in ways we are just beginning to understand. As we move further into the digital age, understanding these trends will be crucial for making informed real estate decisions.
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