Each decade has brought with it new trends in video and the 2020’s are no different. First there was the shift to 550 MHz, then from analog to digital. Now it’s all about broadband streaming. It’s impacting affiliates and distributors and is also being affected by how consumers are adapting to changes.
We look at four key trends that are important considerations for those in the video streaming industry as we move further into 2024:
More isn’t always better
A while back there was the trend to maximize the number of channels believing that offering consumers more choice would naturally attract more subscribers. There was the mindset that if they had the capacity and the channels existing, why not offer 500 channels? It would be a big selling point. While it may have worked for a while, consumers quickly became disillusioned with it, reverting to their few favorites that they preferred to watch. For affiliates the trend is now to identify and focus on bundling those favorite channels rather than trying to maintain a more expansive channel lineup.
A return to partnerships
Video streaming is a competitive space with many new entrants in recent years, yet the cost of programming continues to rise. Rather than trying to own the whole process, there’s a return to making use of partnerships. From a cost point of view, it’s recognizing that there’s value in leveraging existing infrastructure and leveraging the expertise of partners to help manage that infrastructure. This also helps to lower the risk, especially when it comes to trouble shooting and finding out why outages may have occurred.
Consumer adaptation to BYOD
In many ways, consumers have adapted to video streaming on apps and are accustomed to using their own devices. But the consumer experience still matters. Many people are happy to watch on smaller portable devices in their bedroom or kitchen, but in the main living room they still want the big screen. More importantly, when something goes wrong with that big screen, they want that to be part of a package inclusive of all of their telecommunication services, so that repairs or replacements are easier to handle.
Sports and subscriptions
There is a growing trend for major sports events to move away from traditional broadcast channels onto subscription-based streaming channels. On a consumer front, this hasn’t always been well received. While the user interface might be the same to watch the game on an app, it requires a mental shift; one that not everyone wants to make. For many sports fans, they just want to be able to watch their team play the game. They don’t want to have to sign up to a new subscription for that privilege.
A key takeaway is that simplicity is best. Consumers are fatigued. Perhaps this is because there’s so much choice out there, but also because when it comes down to it, they always return to their favorites. There’s no need for excess, de-aggregated content in the future. Consumers are looking for ease of use and this includes not having to flip through two hundred channels to find something worth watching, or to jump between multiple streaming apps to find certain content. As the industry continues to evolve, partnering with providers that understand the complexities of video streaming can help ensure success.
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