Since Netflix’s introduction of the streaming platform format in addition to the DVD delivery service in 2007, streaming services have experienced a rapid
Since Netflix’s introduction of the streaming platform format in addition to the DVD delivery service in 2007, streaming services have experienced a meteoric rise in popularity. This has become especially noticeable over the past few years, when most viewers have stayed at home due to the COVID-19 pandemic, and the number of subscribers and user activity on streaming services have reached record levels. However, this surge of success comes with its downsides and challenges for the industry as it faces increased competition, market saturation and the need to contain rich content.
Last year, almost every major streaming service, including Max, Netflix, Hulu, Disney+ and more, increased the cost of subscriptions. This is in an attempt to encourage additional subscriptions and counter situations where users share access to their accounts with other people.
It is likely that these prices will not return to their previous level, unless there is some significant event, like a pandemic.
The main strategy of streaming services in the past has been to acquire licenses for classic TV shows and movies, or to create exclusive content available only to subscribers. However, as the market saturates, such methods become less effective, and companies are forced to look for other ways to grow, such as increasing the cost of subscriptions.
According to surveys, viewers are willing to pay about $42 per month for multiple subscriptions. With price increases, users may be forced to opt out of some services or look for more affordable options, possibly ad-supported.
For streaming services, the main goal is the constant growth of the number of subscribers and a stable income stream from them. The strategy includes creating quality and engaging content to attract and keep an audience.
In the current environment of fierce competition and rising content costs, viewers will have to take the battle for services and choose the best subscriptions for themselves, and streaming platforms will have to constantly improve content and capture the attention of the audience.