In what way are digitalisation, SVOD, FAST and VOD providers such as Netflix and Disney changing the market for the future?
The TV industry is highly dynamic and that can be characterised by several drivers: digitalisation, new market players, and disruption by digital players have ensured rapid change. Moreover, consumer expectations and usage habits are changing rapidly in the age of video-on-demand and mobile media consumption. The next ten years will see the Film and TV industry rapidly change, this article focuses on future scenarios the industry should be preparing for.
VOD, SVOD & FAST are here to stay
Traditional media concepts are beginning to become a thing of the past, the media industry is undergoing a fundamental change: streaming services are no longer just platforms for the consumption of Film & TV, now platforms are investing in the production and licensing of their content – and are thus in direct competition with the traditional TV and Film industry. However, it is worth noting that many of these traditional platforms are now launching their own on-demand streaming services.
On-demand services have drastically changed how people consume content; consumers increasingly expect relevant and attractive Film & TV content, that can be accessed anytime, anywhere and in a way that suits immediate needs.
It’s All Cyclical
All of these factors are already affecting the market, but what can we expect from the industry in 5 years? Will global players such as Amazon, Netflix, Disney + and Apple continue to dominate the market? Or will the TV and Film industry evolve into a cooperative ecosystem, in which traditional players still have a role to play?
The swift market expansion and ongoing diversification make it difficult to make long-term predictions about the future. Many of the streaming giants originally offered a paid subscription which gave you access to their full range of titles ad-free, jumping to 2022, we are looking at a completely different landscape. Many broadcasters have launched their own streaming platforms in the past couple of years: including Paramount, HBO and ITV, to name a few. As competition has increased it has seen subscriber numbers fall for many platforms; Netflix has seen a loss this year of over 1.2 million subscribers in North America alone. This has pushed many of the market leaders to drastically rethink their offerings: all with a vastly different approaches to keeping subscribers.
Netflix has announced they will be releasing an ad-supported tier, NOW TV’s base offering now includes ads; both doing so to keep subscription prices as low as possible. Disney has taken a different approach by having a jam-packed release schedule, utilising their largest franchises: Star Wars and Marvel.
With a cost of living crisis and a flood of subscription platforms to choose from, consumers are deciding which services to cut and which to keep. One solution launched recently in the US has been a platform that is able to aggregate all subscriptions into one. However, this package deal seems hauntingly familiar to the days of cable television.
Does it pose the question is the TV & Film industry destined to be stuck in this loop forever?
So, what does the future hold for the industry? Some things we can’t predict, however, digitalisation, personalised advertising and less regulation are on the horizon.
The future of the industry can take shape in many different ways, broadcasters and content producers can no longer rely on their current market position. To stay relevant many companies are going to need to consider working together, perhaps even with direct competitors in order to see off streaming giants like Disney.
As Bill Gates wrote 20 years ago “content is king” and for the most part this will not change, it will be how you package that content and how it will reach the consumer.