A lot of things are digitized today as technology begins to take over the media space. For a long time, television has been a traditional form of entertainment enjoyed by a lot of households around the world, but this is no longer the same. Instead of the usual gathering of the family to watch a program on TV, we now have individual family members watching whatever they want on their various devices at their own convenience. The services that allow consumers the flexibility to enjoy their programs whenever and however they want are slowly affecting the future of television.
With regard to the future of Television, Tim Cook, the CEO of Apple Inc. said that apps are the future of TVs. Following this statement, TV apps began showing little growth while streaming services went on an uptrend. Four years down the line, it is rather glaring that the future of TVs is streaming rather than apps – as stated by Cook.
Content Consumption Revolutionized
Everyone around the world consumes content differently because of the revolutionary way streaming platforms now deliver content. Netflix, one of the stakeholders in the streaming business has well over 139 million subscribers on its platform. The success of this business model for Netflix and other streaming services can be attributed to the pricing which is usually a fraction of the amount charged by cable TV service providers. Netflix also uses Artificial Intelligence and Machine Learning to recommend shows to their subscribers based on what they watch.
Contrary to the setup of cable TV service providers whose shows are constantly interrupted by commercials, the viewing experience provided by Netflix and other streaming services such as Amazon Prime and Hulu, allows consumers to binge-watch their favorite shows and series with no interruption at all. This makes cord-cutting using a VPN rather popular, especially among cable TV users in countries where these streaming services are geo-restricted.
Senior Consumer Tech Editor at Gizmodo, Alex Cranz, published an article stating the perils associated with a situation whereby a single company controls the production and distribution of entertainment. Because of this, the number of streaming services keeps increasing as well as the competition to deliver unique and quality content, which would benefit the consumers in general. However, viewers might be plagued with the challenge of having to subscribe to various streaming platforms in order to be able to view top shows from each of the platforms.
The Battle for Top Content Re-defined
In an announcement made by NBC, it was stated that “The Office” which is currently being aired on Netflix will be pulled out once they launch their own streaming service – NBC Universal. Since there are several shows aired by these streaming platforms, the battle for obtaining rights to shows and the exorbitant purchasing prices placed on these shows have led these services to begin running their own productions in-house, giving them the hedge against other production studios which enables them to increase distribution fees or simply withhold their content.
Customer experience is another important factor that comes into play in the entertainment industry and everyone including video games, bars, restaurants, movie theaters, and even TV are considered to be competitors to streaming services. However, Netflix’s CEO, Reed Hastings attributed their growth to be based on the sterling quality in the screen time experience they offer their consumers when compared to others.
A lot of streaming services are following the path that Netflix has laid in terms of convenience, data strategy, customer experience, convenience, and personalization. The future of content is heavily dependent on data and in the next five to ten years, we will continue to see the bedrock of these streaming services, which is data, continue to expand.