Netflix, Disney, Amazon, and other major streaming services are in tough competition for subscribers globally. This new online conflict between these service providers may drastically affect how the media industry works. While we know that Netflix, Apple, and Amazon will participate in this war, there are other participants that these giants might not have seen coming.
Over the last year, the sudden growth of connected television (CTV) has given many content creators access to new sets of audiences. Most major TV streaming services currently have massive audiences, from Disney Plus’s nearly 139 million subscribers and HBO Max’s 78.3 million to Amazon’s 200 million and Netflix’s 222 million-plus subscribers. This continuously growing number of TV streaming subscribers can be enough to redefine the media industry.
The Battleground for Innovation
One of the determiners that could influence this streaming war is the participant who can innovate the most to get the biggest audience population. Most major streaming companies like Apple, Netflix, and Amazon are aware that subscribers will not spend their money on all their subscription services. Instead, they will likely choose the best streaming service they think will be worth the most money. That said, people will look for something that’s beyond video streaming.
As Netflix is the leading streaming service provider worldwide, the number of its subscribers has become the benchmark of the success of the competing service providers. Disney Plus is targeting 260 million subscribers by 2024, while Amazon Prime will achieve it soon. If these streaming platforms reach this certain mark, they need to guarantee that they can continue to offer fresh and innovative content to maintain a loyal audience base. On the other hand, if they fail to provide the quality content users seek, their audience will likely decline significantly, affecting their overall ranking and operations due to lack of funding and many more reasons.
Service Beyond Video Streaming Content
While unique content is a major deal-breaker for these streaming providers, consumers will still look for something beyond video content. It could possibly be games, sportsbooks, and others. A great example would be Dish Network’s Dish TV. Dish TV is one of the emerging video-on-demand providers that collaborated with another company to incorporate sportsbooks into their TV packages. This bold yet innovative move has left people interested and curious about what’s next, encouraging more and more people to subscribe to their TV plans to find out.
Aside from that, Dish Network has also given its potential and existing subscribers a variety of options, including its Dish Latino TV deals for its Latin American users who want to solely focus on Latino channels. These kinds of moves will likely impact the brand positively for a long time.
Another example would be Disney. It’s currently looking into video games, which can boost its appeal to the international market. Now that online gaming is in demand, especially for kids, incorporating video games into its video streaming services might just be a genius move.
Unfortunately, there are always huge risks when it comes to altering products and services. In some cases, existing customers might find new products uninteresting or unappealing, which can negatively affect your overall performance. It only means that streaming services should ensure that their churn rates are as low as possible and the average time users spend on their streaming platforms is high.
The Effect on the Advertisements Industry
This need for new audiences and increased creativity, along with the need to keep existing customers, will undoubtedly have a significant impact on the advertising sector. Advertisers are still adjusting to the fact that most media consumers are moving away from television and toward streaming TV services. The future streaming conflicts provide advertisers with a great opportunity to diversify and get into this market.
Innovative new marketing tactics are already being employed across streaming channels, such as on the popular video-game network, Twitch. Many advertisers are now deploying stream display advertising, which appears beneath or around a user’s stream without interfering with their visual experience, ensuring that the user does not miss any information. Additionally, targeted augmented reality advertisements, which use consumer data to produce custom ads that appear to burst out of the screen, can quickly capitalize on new trends while also providing excellent value.
Ad-Based vs. Ad-Free TV Streaming
Most consumers don’t really mind seeing ads in between their favorite shows if it makes their monthly subscription cheaper. With that in mind, ad-based video on demand (AVOD) might be a game-changer for many streaming platforms. AVOD can provide great benefits for the subscribers while significantly lowering the subscription rates.
It could be a difficult decision for viewers if they were to choose between a lower-cost ad-based video streaming or a more expensive ad-free content streaming. With the rise of Amazon and Disney, Netflix has been significantly losing users at a rapid rate, even though its churn rate is still believed to be relatively low. It’s true that innovation and cross-media services might be the key to earning the most subscribers in the market, but it has been tried and failed before.
Nonetheless, regardless of which TV streaming provider wins the streaming war, it is still the consumers who will benefit from it. It’s not easy to innovate, especially if one wrong move could cost the entire brand or platform. However, with the streaming giants’ desire to get the most part of the subscribers, they need to take calculated risks to beat the leading streaming service today.
The battle of the TV streaming giants might revolve around innovation and what other features they can offer their users. These companies must be willing to take risks that might affect the pricing, subscription models, and other factors influencing the buyer’s decision.
It’s worth noting that in almost every industry, a number of streaming giants will likely dominate the industry in the near future. While Netflix is still relevant, although in decline, and Amazon, Disney, and other major streaming service providers look like the strongest competitors, they will all face a surprising challenge that would benefit every TV subscriber worldwide.