It has been estimated that streaming platforms will be increasing their budgets for original content to over $23 billion in the coming year. A single top streaming company has a $17 billion budget for 2023. These figures provide an idea of how big streaming has become and indicate that this is the way of the future.
In a couple of years, streaming platforms will be using 8K (growing to 12K over time) to replace 4K, a tremendous increase in pixels that may challenge current devices. One can only imagine the clarity and immersive potential. There will be a need for greater storage capacities on these platforms. Consumers will need more flash capacity and SSDs. This will give televisions and smartphones more capacity and speed to cope with the data.
Let us look at some of the changes that are anticipated.
Bundling and Unbundling
Traditional television bundles are bought by consumers in the form of packages. This is cheaper than paying for individual channels. But cable is finding it hard to keep up with competitors offering streaming services.
Unbundling lets viewers choose the channels they like and not pay for any others. Traditional providers are having to embrace this to keep their customers. Another strategy will be to buy out or merge with other services.
In the final reckoning, customers will choose the services that suit them.
The Advantage for Streaming Providers
Streaming providers can offer consumers a greater range of choices. Options include the capability to watch an episode of a favorite show that aired the previous night, live television, original shows, or full seasons of any show, old or new. Customers are demanding the entertainment they want.
Netflix is in the lead as far as streaming goes. For a monthly or annual subscription, consumers can watch whatever they want without the disruption of ads. Cable television is getting left behind. Hulu is also in the running, offering multiple packages from ads-included streaming to ads-free viewing. The Vidgo app can be used on certain devices, such as smartphones, Android and Amazon Fire televisions, and web browsers.
Six million households ended their services with cable television in 2020. A total of 31 million families were lost in recent years. With the social isolation caused by Covid, many families became more demanding and were able to get their needs met by turning their backs on cable and going into streaming. Cable still serves 77 million others, but the trend of moving from cable television to streaming services is set to continue.
Leaving Commercials Behind
The business model streaming services are using has enabled them to cut back on or cut out commercials altogether. This makes them even more popular with viewers, as advertisements are strictly curtailed or avoided completely. A subscription model with unbundling has taken its place.
The internet already offers banner ads instead of three-minute advertisements every half hour that streamers use. A decade from now, streamers are expected to have adopted this hybrid model. Advertisers are already adapting by referring viewers to their smartphones while watching television.
The future of streaming will result in more choices for viewers in the years to come.