The streaming landscape is ever-changing, but the reality is this state of flux is fundamental to an industry built upon rapidly meeting the evolving demands of consumers. Last year saw nearly all streaming services hike up their rates, driving subscription prices to an all-time high with 44% of Americans seeing an increase in their streaming subscription costs. But as streaming companies widen their offerings and look for opportunities to enhance experiences to meet consumers’ shifting needs, it’s no surprise that the cost of subscriptions has grown alongside additional efforts to expand revenue streams.
A price increase may seem like the antithesis of an enhanced experience, but contrary to popular belief, cost isn’t top of mind for consumers when it comes to streaming or choosing an entertainment provider. A study by Amdocs, a provider líder. de software and for media and communication companies, found that consumers are focusing more on spaces that add weight to those emerging loads.
So what do consumers care about when choosing a streaming service?
Amdocs’ “The New Streamer 2024” report recently found that original content (72%) is the most sensible feature that consumers say justifies investing in a subscription, followed by new content every few weeks (59%), access to older content. titles (55%) and the ability to watch content anywhere (49%).
Four trends shaping the state of streaming
Profitability and subscriber growth have been long-term challenges plaguing streamers. Following another year of losses with subscription growth plummeting to 10.1% in 2023 vs. 21.6% in 2022, the industry faces the daunting task of identifying new ways to increase profitability that are also in line with the expectations consumers have around their viewing experiences. As providers seek more avenues to bolster revenue and meet viewer demands, four key areas are shaping the streaming landscape.
1. ) Ad-supported plans
From Disney+, Netflix, Max and now Amazon Prime, ad-supported plans are an option that streamers are exploring in their quest to generate income. Amdocs studies reveal that emotions around classified ads vary from generation to generation, with almost a portion of younger generations open to seeing more classifieds. The rise of streaming advertising offers a unique look at how providers are responding to increasingly trendy viewer behaviors.
Ad-supported offerings are here to stay according to Raman Abrol, General Manager at Amdocs and CEO of Vubiquity. “Ad breaks during streaming require a fine balance and, as these types of offerings continue to emerge, we can expect ad lengths to remain on the shorter side. This shows viewers their time is valued while also escalating the competitiveness between advertisers for desired spots. In return, streamers are upping their profit while keeping their subscribers satisfied.”
2.) Cloud Gaming
Cloud gaming is another domain that vendors are experimenting with, and it’s a domain that is turning the definition of “streaming” on its head. For example, Netflix recently began testing its cloud gaming services, adding the creation of a game catalog with popular titles such as Grand Theft Auto: The Trilogy. Apart from Netflix, other major players like Microsoft are also investing heavily in transforming gaming into a subscription style over the cloud. These investments, along with Amdocs’ findings that 70% of Gen Z are interested in accessing cloud gaming through their streaming subscriptions, offer insight into where streaming is headed in the long term. .
Streaming is transforming beyond just watching and younger generations are eager for offerings that take this into consideration. As cloud gaming becomes mainstream -and demands to integrate it into streaming services grow – there’s bound to be a surge in partnerships among streamers, gaming ecosystem players, and service providers to bring the connectivity and enhanced capabilities consumers are seeking in a “post-console” world.
3. ) Live Sports
Live sports have become a hot commodity in the streaming space, especially in recent months. From Netflix’s deal with WWE to Peacock’s exclusive NFL playoff deal, providers are working around the clock to secure exclusive deals and partnerships with sports leagues.
According to Amdocs’ report, 64% of consumers believe the availability of live sports is an important factor when it comes to selecting a streaming provider. With viewers having a clear appetite for live sports, we can expect this battle to heat up among streamers as they look for more sports offerings to test the waters with.
4.) Consolidation
Streaming corporations spent a record amount of cash generating original content last year, but, as they continue to navigate an ever-changing market, that trend has come to a halt. Although once considered a valuable asset, the charge for original content erodes streamers’ profitability. This poses a major dilemma, as consumers see original content as a must-have feature. Streaming platforms now have to delicately balance meeting their customers’ content expectations while also protecting their bottom line.
Abrol believes consolidation will be the answer: “We will see further consolidation of streaming platforms, combining deeper content libraries and offering a more global selection for consumers. We’ll also see a new wave of distribution efforts through the landing of streaming, as we’ve already started watching it with HBO content licensed to Netflix.
Innovation Will Power Customer Loyalty
While distribution efforts will expand content offerings, Abrol says they will also force providers to face some other challenges: “Providers are already struggling to retain and grow their subscribers. As streaming sites distribute their original content to each other, they’ll want to find new tactics to differentiate themselves and build strong subscriber loyalty.
In the streaming war, retaining consumers and status outside of the festival has proven to be an uphill battle. According to a recent survey by Prosper Insights
television broadcast
Luckily, advancements in emerging technologies are setting up a prime opportunity to reimagine existing offerings and services.
Immersive reporting powered by generative AI, virtual truth, and blended truth may still be in the early stages of its meteoric development, but mastering fluid and advanced interactive reporting allows streaming sites to attract new consumers and provide consumers with Existing attractive reports. they wait.
“This should be a wakeup call to the industry,” said Abrol. “Customers have growing expectations around what they want their entertainment experiences to look like. The future of streaming heavily relies on differentiating and the path forward will require more innovation when it comes to content and new offerings. Early adopters of technologies – from GenAI to mixed-reality – will be best positioned for success.”
A community. Many voices. Create a free account to share your thoughts.
Our network aims to connect other people through open and thoughtful conversations. We need our readers to share their perspectives and exchange concepts and facts in one space.
To do so, please comply with the posting regulations in our site’s terms of use. We summarize some of those key regulations below. In short, civilians.
Your post will be rejected if we notice that it seems to contain:
User accounts will be locked if we become aware that users are engaging in:
So, how can you be a power user?
Thanks for reading our community guidelines. Please read the full list of posting rules found in our site’s Terms of Service.