In what ways have VoD providers such as Netflix changed the market of the future?
Ever since the pandemic hit globally, online streaming took center stage. Jumping on the bandwagon, different media networks in the year 2020, launched their video-on-demand streaming services such as HBO Max, Quibi, Peacock, etc.
All of these platforms were released with only one intent in mind – to turn the pandemic situation in their favor. The TV and video market is an ever-evolving one and its characterized by a great number of drivers: digitalization, new market offers, and more.
People were largely accepting of these streaming services since the pandemic forced everyone to quarantine, self-isolate, and socially distance themselves from others.
On the other hand, the newfound boom in the streaming industry did not bode well with cable TV companies, who suffered major losses and setbacks like poor customer retention, advertising, and more.
Unfortunately, these issues are projected to increase with time since there’s been a paramount shift from traditional TV viewing towards online streaming. Traditional media is slowly becoming obsolete, with the entire industry undergoing a fundamental change: streaming services are more than just a platform to consume films and TV programs, with almost all of them heavily investing in the production and licensing of globally successful own content- thus being in direct competition of traditional TV and video industry.
Meanwhile, broadcasting and media companies are launching their own- on-demand offerings, and global content producers are setting up their streaming services.
Additionally, on-demand video has also radically impacted consumer behavior. Consumers have high expectations now, in terms of the attractive TV and video content that can be accessed anytime, anywhere whenever they want.
At the moment, the future of TV companies does not look too promising as they have not been able to reinvent themselves as per the requirements of their subscribers.
In comparison, the future of online streaming looks very encouraging.
Generally, consumers are more inclined to subscribe to the streaming giants of the industry, such as Netflix (CNet reports that Netflix is still the best streaming service in 2021!), Amazon Prime, and Disney Plus even though there are other media services available to explore too such as YouTube TV, Hulu, BBC iPlayer, TVPlayer, Hostar and more.
In a nutshell, all of these services have changed the perception and habits of viewers on a global scale. The swiftly changing market landscape and ongoing diversification have made it difficult for traditional TV companies to keep up owing to factors such as interactive content, Live TV, personalized packages, and more.
Extreme competition and ever-evolving digital media have forced TV companies to offer customized TV packages where consumers do not need to buy an entire set of channels just to watch their favorite media content. They can include their preferred channels in their subscription packages.
Interactive content is an exciting new concept that has been implemented first by the most popular video-on-demand streaming platform, Netflix. In an episode of Black Mirror, viewers could change the plot and dialogues as they wanted to. With such provision, the possibilities are endless. Viewers can participate and change the outcomes of their favorite shows. In comparison, traditional TV channels will need to broadcast such shows or use these tactics to further keep viewers engaged and hooked to the screen. No wonder audiences are always looking forward to streaming best movies on Netflix, as they know it never disappoints.
Live TV is an integral part of online streaming these days. As opposed to conventional TV, you’re forced to watch your favorite show at a designated time on a specific day. You can avail of bundle offers of Hulu with Live TV packages and the accessibility to 60+ channels on your desired devices as per your preferences.
The streaming industry deploys various tactics to transform the viewing habits of subscribers globally. For instance, streaming platforms offer original content in the form of TV shows, movies, and documentaries to subscribers regularly. Unfortunately, the same can’t happen while watching conventional TV.
These original programs have shaped up the industry and will pave the way for more content creation in the same area. Along with this, you can also enjoy lots of exciting features such as offline viewing, simultaneous streams, virtual parties and more, on your preferred devices.
Offline viewing has allowed users to watch TV shows, movies, and other media content without using an internet connection, by just downloading the content on their devices.
Certain universal implications are relevant for all market participants and they should take note of these in their strategic planning ahead. In particular broadcasters and content producers can no longer rely on their current market position.
While online streaming services will continue to improve in terms of customer base, content quality, and additional features, cable TV providers will need to up their game on similar fronts such as content quality, pricing, and more. In no time, video-on-demand services will indefinitely replace conventional cable TV sooner or later.