What is Streaming TV? The Complete Guide for 2024
Streaming TV has revolutionized the way we watch television. With the ability to access a vast library of on-demand content anytime, anywhere, and on almost any device, it‘s no wonder that streaming has overtaken traditional cable and satellite TV in popularity. In fact, as of 2024, over 80% of US households subscribe to at least one streaming service, according to a report by Leichtman Research Group.
But what exactly is streaming TV, and how does it work? In this comprehensive guide, we‘ll break down everything you need to know about streaming television, including:
• How streaming TV technology works
• Streaming vs. cable/satellite TV
• The history and evolution of streaming TV
• Top streaming services and what they offer
• Equipment needed to stream TV
• Pros and cons of streaming television
• The future outlook for the streaming industry
Understanding Streaming TV Technology
At its core, streaming TV involves delivering television programming to users over the internet in real-time, as opposed to broadcasting it over cable or satellite signals. When you select a show or movie to watch on a streaming service, that content is transferred to your device in a continuous flow of data, allowing for uninterrupted viewing.
Behind the scenes, streaming providers utilize robust cloud computing infrastructure to store massive catalogs of content on remote servers. When a user clicks play, the streaming service encodes and compresses the requested video file into smaller data packets. These packets are then transmitted over the internet to the user‘s receiving device, such as a smart TV, streaming media player, smartphone, or computer. The user‘s device decodes and reassembles the data packets into watchable video.
So as long as you have a reliable high-speed internet connection, a compatible device, and a subscription to a streaming service, you can access live and on-demand content in seconds, without any of the hardware or contracts generally required for cable or satellite TV.
Streaming TV vs. Cable/Satellite
The shift towards streaming TV in recent years is largely due to the many advantages it holds over traditional cable and satellite television:
Cost: Streaming services are typically much more affordable than cable/satellite packages, with plans starting as low as $5-10/month. Because content is delivered over the internet, streaming providers can avoid many of the infrastructure costs of cable and pass those savings to subscribers. And with most streaming services, there are no hidden fees, equipment rentals or long-term contracts.
Content Selection: Streaming libraries have grown tremendously to encompass thousands of shows and movies, including tons of original exclusive content. And that selection is available on-demand, so you can watch whatever you want, whenever you want. With cable, you‘re limited to whatever programming is being broadcast live. Some streaming services now offer live TV as well.
Convenience: Streaming TV is incredibly convenient. You can watch on any internet-connected device, whether at home or on the go. Many streaming services also allow simultaneous streams on multiple devices under one account. With features like cloud DVR and offline downloads, never miss your favorite shows.
Video Quality: Streaming video quality has vastly improved alongside internet speeds. Most services now offer full HD or 4K Ultra HD resolution for crystal clear picture. The video and audio quality with streaming meets or exceeds what cable provides.
Despite these benefits, there are some trade-offs with streaming TV. Not all services carry local TV channels, though some have added that capability. Live sports and news programming still lags on streaming. With so many different streaming options, costs can add up if you subscribe to multiple services. And you need a smart TV or external device to stream on a television set. But overall, streaming delivers unbeatable value and flexibility compared to cable.
Evolution of Streaming TV
Streaming TV technology traces its roots to the early-to-mid 1990s, with the introduction of web-based video players like RealNetworks‘ RealPlayer. As internet speeds and bandwidth improved, streaming quality and reliability gradually increased. YouTube‘s launch in 2005 marked a major milestone for online video streaming, though its content was mostly limited to short-form and user-generated clips.
The first major streaming service to offer full TV shows and movies was Netflix, which started out as a DVD-by-mail rental company in 1997. Netflix launched its streaming platform in 2007, but the selection was limited. Hulu, a joint venture between NBC, Fox, and Disney, followed suit with its on-demand TV service in 2008. Amazon Prime Video also debuted in 2008 as an added perk for Amazon Prime members.
As these early services gained traction, media companies and tech giants alike entered the streaming wars. 2013 saw the debut of Google‘s YouTube Premium (originally called YouTube Red). HBO launched HBO Now, the precursor to HBO Max, in 2014. 2019 brought Apple TV+, Disney+, and the short-lived Quibi. NBCUniversal‘s Peacock and WarnerMedia‘s HBO Max both went live in 2020, followed by Paramount+ (a rebrand of CBS All Access) in 2021.
Alongside this proliferation of on-demand streaming options, a number of companies introduced live TV streaming services, or "skinny bundles". Sling TV was first on the scene in 2015, followed by AT&T‘s DirecTV Now (now AT&T TV) and Google‘s YouTube TV in 2017, and Hulu + Live TV in 2018. These virtual MVPDs aimed to replicate the live/linear channel lineup of cable TV, delivered over the internet.
2022 marked a major turning point, with more streaming subscribers than cable TV customers in the US for the first time ever. Streaming claimed a 39% viewer share compared to 37% for cable TV. By 2024, the gap has only widened. Meanwhile, streaming services continue to evolve, with ad-supported plans and bundles driving growth.
Leaders in Streaming TV
As of 2024, here are the top streaming TV services and what distinguishes their offerings:
Netflix: The grandfather of streaming still reigns supreme, with over 300 million global subscribers across plans ranging from $8-20/month. Netflix‘s vast, ever-changing library and hit original series like Bridgerton and Stranger Things keep viewers coming back.
Hulu:Specializes in next-day streams of broadcast TV shows, along with acclaimed originals like The Handmaid‘s Tale. Its $8/month on-demand plan is hard to beat, though the Live TV package is pricier at $70/month.
Amazon Prime Video: Included free with a $129/year Prime subscription (or $9/month standalone), Prime Video is a tremendous value, with a huge selection of movies, TV shows and originals. Its acquisition of MGM has added even more must-see titles.
Disney+: Leveraging Disney‘s iconic brands and franchises, including Star Wars, Marvel, Pixar and National Geographic, Disney+ is a blockbuster success just four years post-launch with over 160 million subscribers globally. All for just $8/month.
Apple TV+: Though it lacks a deep back catalog, Apple TV+ has made waves with buzzy originals like Ted Lasso, Severance, and the Oscar-winning film CODA. At $5/month, it‘s one of the most affordable options.
HBO Max: Boasts over 80 million subscribers thanks to prestige content across HBO, Warner Bros., DC, Adult Swim and more. Its $10/month ad-supported plan has driven continued growth.
Peacock: NBCUniversal‘s late entrant to the streaming race has amassed 60 million signups between its free and paid ($5/month) tiers, with a wealth of content from across the NBCU empire and exclusive streaming rights to The Office.
Paramount+: The rebranded CBS All Access has seen a resurgence, topping 60 million subscribers with the strength of Star Trek, other ViacomCBS properties, and live sports like the NFL and UEFA.
YouTube Premium: For $12/month, subscribers can access ad-free video and music streaming, along with YouTube originals. But the free, ad-supported version of YouTube still reigns supreme in overall popularity.
YouTube TV: One of the top live TV streaming services, YouTube TV starts at $73/month for 100+ channels, unlimited cloud DVR, and exceptional features. As of 2024, it has over 8 million subscribers.
Hulu + Live TV: Close behind with 7 million subscribers, Hulu + Live TV starts at $70/month for 85+ channels along with access to Hulu‘s full on-demand streaming library and Disney+ and ESPN+.
Sling TV: A more economical alternative, Sling TV‘s plans start at $40/month for 50+ channels. While it has fewer features than competitors, it‘s a solid value for cord-cutters.
Equipment for Streaming TV
One of the convenient aspects of streaming TV is that you likely already own a device capable of streaming. Smart TVs with built-in streaming capabilities now make up the majority of new TV sales. Gaming consoles like the PlayStation 5 and Xbox Series X also have streaming apps.
If you don‘t have a smart TV, a streaming media player can turn any TV with an HDMI port into a streaming machine. The most popular streaming devices as of 2024 include:
- Roku: With an intuitive interface, vast app selection (500,000+) and range of models from $25-130, Roku is the most popular streaming platform in the US.
- Amazon Fire TV: Amazon‘s streaming devices are a close second to Roku and deeply integrated with Alexa voice control. Prices range from $30 for the basic Fire TV Stick to $500 for the Omni Series QLED 4K Smart TV.
- Google Chromecast: Google‘s newest $50 Chromecast with Google TV supports 4K HDR and comes with a remote and on-screen interface.
- Apple TV: The premium streaming box starts at $150 for HD or $180 for 4K, with deep integration with other Apple devices and services.
- NVIDIA Shield: Built for gamers but great for streaming, the NVIDIA Shield starts at $130 and runs on the latest Android TV operating system.
In addition to a streaming device, a high-speed internet connection is recommended for smooth streaming TV. For video up to 1080p HD resolution, aim for at least 5 Mbps download speeds. 4K streaming will demand 25 Mbps or higher. And of course, broadband data caps can be an issue, so go for an unlimited plan if available.
Pros and Cons of Streaming TV
There‘s a lot to love about streaming TV, but it‘s not without some drawbacks. Here‘s a breakdown of the main advantages and disadvantages:
Pros:
• More affordable than cable/satellite TV on average
• Extensive on-demand libraries with exclusive original content
• Available on almost any device, at home or on the go
• No equipment rentals, contracts or hidden fees
• Personalized recommendations to discover new content
• HD/4K video quality as good or better than cable
• Pause, rewind and restart live TV with cloud DVR
Cons:
• Costs can add up with multiple subscriptions
• Not all services have live channels or local stations
• Requires a smart TV or external streaming device
• Relies on internet connection – no internet, no TV
• Can be harder to flip through live channels
• Some services have ads despite a monthly fee
• Content comes and goes from streaming catalogs
On balance, the pros seem to outweigh the cons for most consumers, as evident in the massive growth and popularity of streaming TV. But traditional cable and satellite still have a role for those who prefer a simpler all-in-one package and don‘t mind paying extra.
The Future of Streaming TV
Looking ahead, the streaming TV market shows no signs of slowing down. More and more households are cutting the cord every year, and the exclusive content arms race between top streamers only continues to heat up. Analysts at Deloitte expect streaming subscriptions to surpass 1 billion worldwide in 2024.
At the same time, the streaming landscape will likely see further consolidation. In a more crowded and competitive market, mergers and acquisitions offer a path forward. The planned combination of HBO Max and Discovery+ in 2024 is one bellwether. Bundling and partnerships across services will also be key.
With so many services, consumers are already experiencing subscription fatigue. Streaming providers will focus on delivering better value to reduce churn. Hybrid monetization models, like lower priced ad-supported tiers, could ease the burden on consumers‘ wallets.
Streaming TV technology itself will also keep advancing. Improved compression and adaptive bitrate algorithms will enable higher video quality and smoother streams even over spotty connections. The on-screen interface, navigation and discovery capabilities will also iterate to make finding something to watch even easier. And further hardware innovation will bring streaming to even more screens around the house, from the bathroom mirror to the fridge.
In Conclusion
Streaming TV has already reshaped the television landscape and will only grow in importance in the years ahead. For consumers, streaming offers unparalleled choice, control and value. With so many great services and more compelling content coming online all the time, there‘s never been a better time to be a TV fan.
Of course, building the ideal streaming TV setup takes some research and customization based on your specific needs, interests and budget. Hopefully this guide has given you the foundation to navigate the exciting but occasionally overwhelming world of streaming television now and into the future.
