It is no longer just a matter of consuming films, TV shows, and online videos: streaming services are now producing and licensing their own content – and are in direct competition with traditional television and video. Global content producers are also setting up their own streaming services while broadcasters and media companies roll out on-demand offerings.
In addition, on-demand video has drastically altered consumer behavior: consumers now expect TV and video content that is relevant and attractive, accessible anytime, anywhere, and in the format appropriate for their needs.
In recent years, exponential technological advances have transformed entire industries. The media and television industries have been transformed by digital channels such as Netflix, Amazon Prime, Hulu, and others.
In a decade, the landscape will look completely different because of the rapid pace of technological change. The entertainment industry is likely to see three trends develop over the next 10 years. We will discuss those trends in this article.
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1. Freedom of Choice
In the cable TV industry, customers typically purchase packages of popular channels. A bundled package of channels allows consumers to buy fewer channels for the same price than if they purchased them separately.
However, cable TV is becoming more competitive. There has been a decline in interest in traditional cable television as streaming services such as Netflix, YouTube, Hulu, Apple TV, HBO, and Amazon Prime have produced and offered premium shows. Though great cable TV providers such as https://www.localcabledeals.com/optimum/cable-tv are well-considered, people have shifted more towards streaming services for various reasons. On a side note, many people still enjoy the traditional cable TV more as the element of surprise is always there and it is not even expensive anymore. Many cable providers offer amazing deals and offers. One we just mentioned.
The entertainment industry provides consumers with more options in terms of how they consume content, whether it is live TV, watching a favorite episode from last night, or binge-watching full seasons of past or present shows. By using streaming services, consumers are able to access a wider variety of entertainment, such as TV shows, movies, and original content.
A monthly subscription to Netflix includes no commercials. Netflix is the number one streaming service. With a Hulu membership, customers can stream movies and live TV, including sporting events, one day after the shows originally aired on ABC, NBC, and CBS.
Aside from adding movie channels and sports channels, Hulu provides add-ons such as HBO and ESPN. As with Netflix, Hulu offers multiple packages, ranging from cheap plans that include some ads to ad-free plans that do not.
The Great Unbundling
Using the great unbundling, people are able to pay for the channels they desire and consume entertainment content according to their preferences. There will likely be competitive pressure on traditional TV providers as a result of this freedom of choice. Cable channels are likely to continue unbundling their services in order to remain competitive.
There is no doubt that entertainment providers will merge in the future. It is for this reason that Hulu has a partnership with Disney, which also controls ABC, ESPN, and Pixar. Disney offers a wide array of entertainment choices to its customers due to a number of timely acquisitions.
As cable providers unbundle their services, the streaming industry is also re-bundling through a trend of mergers and acquisitions. Regardless of the ownership of media companies, freedom of choice will likely continue in the future, forcing traditional television providers to reconsider how they deliver their services.
In 2020, a total of 31 million U.S. households decided to cut the cord with their cable providers, representing a six percent decline from the previous year. The cord-cutting trend is expected to continue growing, eventually reaching 46 million households.
Cable or satellite TV is still available to more than 77 million households, but the number declined by 7% in 2020 from 2019. Many people stayed at home to avoid infecting themselves during the Coronavirus pandemic, which contributed to the cord-cutting trend. However, the number of cord-cutters will likely rise in the future, despite the skewed number of new streaming subscribers in 2020.
2. Antiquated commercials
Streaming-service providers are demonstrating that a business model without commercials can generate success and growth. Subscription models are now becoming the norm instead of relying on advertising revenue. Even traditional cable services will become subscription services in 10 years, allowing consumers to unbundle channels and pay according to the number and kind of channels they select.
Further, a hybrid model with a subscription service and smart advertising may be available in 10 years. As opposed to having three-minute commercials during a 30-minute television show, TV programming might soon transition to a subscription-based model, where viewers can receive targeted banner ads by paying a monthly fee. On the internet, this type of advertising is already prevalent, and television companies can do the same with the data they gather.
In addition, advertisers will likely look to increase engagement with their ads. The use of second-screen advertising has become widespread among TV advertisers, causing viewers to visit the company’s website during live shows via their mobile devices. As an example, an advertisement could run during a live broadcast encouraging viewers to access the company’s website via their mobile device to take advantage of a promotion or sale.
3. Enhanced Interactivity
There are several companies that have developed virtual reality technologies, including Google, Meta (formerly Facebook), and Microsoft. Traditional television screens will be replaced, at least partly, by variations paired with virtual reality (VR) eyewear and headsets within the next 10 years. The Google Glass project and Samsung’s foray into wearable accessories that turn phones into virtual reality devices already demonstrate this.
In addition, all TVs are expected to be smart TVs in the next ten years. In addition to viewing videos, listening to music, browsing the Internet, and viewing photos, users of these devices will also be able to watch virtual reality and future programming.
Several technology giants are racing to develop smart TVs, both within and outside of the industry. Consumers will soon be able to afford more powerful smart TVs thanks to companies such as Google, Netflix, Apple, Amazon, and a few more developing more powerful smart TVs.
Let us see where the industry takes us in the coming few years.