Aug. 16, 2023

Streaming Services have Revolutionised Viewing Habits

In an era marked by transformative technological advancements, the landscape of entertainment consumption has undergone a profound shift, fundamentally altering how audiences engage with content. By: Syahmi Zulqarnain

The Rise of Personalised Experience

The rise of streaming services, catalysed by YouTube's debut in 2005 and Netflix's streaming foray in 2007, has redefined how audiences engage with content. No longer tethered to scheduled TV viewing, viewers now embrace the flexibility of on-demand streaming. Fuelled by a desire for greater autonomy, viewers are increasingly drawn to the personalised experience streaming platforms offer. With a treasure trove of content available at their fingertips, audiences can curate their own viewing schedules and tailor their entertainment choices.

Younger generations born after the 1990s, having grown up in the digital age, have been most profoundly impacted. The accessibility and portability offered by streaming services align seamlessly with the fast-paced, digital-native lifestyles of today's youth. Streaming apps such as Netflix, Spotify, and Disney+ often come preinstalled on a variety of mobile devices or are available as add-ons during purchase of such devices. With the convenience of accessing content on a variety of mobile devices, streaming has become a cornerstone of their entertainment repertoire. The ability to watch what they want, when they want, wherever they want resonates powerfully with a generation that values instant gratification and flexibility in their media consumption.

Financial Landscape: Revenues and Realignments

While this seismic shift has heralded exciting new vistas, it hasn't been without financial challenges. Streaming video subscription and advertising revenues surged from a mere $2 billion in 2010 to a projected $100 billion by 2026. Yet, the migration from traditional multichannel platforms came at a cost. The traditional video subscription market, including cable, telco, and satellite services, saw a revenue peak of $116.94 billion in 2016, but that has dwindled to $84.38 billion in 2022.

The industry is in flux, with streaming video revenues poised to surpass multichannel revenues by 2026, marking an era where the digital dollar reigns supreme. Cable networks and TV stations have reoriented strategies toward direct-to-consumer platforms, while the film industry's streaming foray seeks to strike a balance between theatrical and digital releases. The U.S. TV industry was observed to have generated $71.47 billion in gross advertising revenue in 2022, buoyed by political ad spend, even as political campaigns gradually tap into streaming's targeted capabilities.

Balancing Tradition and Innovation

In this epoch of technological disruption, the transition from scheduled TV to streaming has been as much about preserving traditional revenue streams as it has been about embracing new opportunities. As the streaming revolution continues its relentless march, the media sector grapples with the delicate balance of tradition and innovation, while audiences, awash with choice, explore new ways to engage with their beloved content. The allure of streaming's personalised experience, combined with the appeal of flexibility and choice, has set the stage for a new era of entertainment consumption.

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