Consumer Video Streaming Spending Expected To Skyrocket

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Image: Apple Website

It’s the time in streaming that everyone has been waiting for. Four of the world’s largest media companies will release their own major premium video streaming service (Apple TV +, Disney +, HBO Max, and NBC Peacock). As cord cutting progresses and consumer markets move towards paying for media through streaming services, major players in the industry have recognized this shift and made moves towards innovation.

Consumer video streaming spending is forecasted to continue its rapid growth into the next year rising from 14.1 billion to an astonishing 22 billion. This 25% growth rate is one of the largest spending increases seen by media companies in history. The Consumer Technology Association believes this year will be the sharpest increase in consumer video streaming spending as new platforms are released, which will eventually lead to a steady level-off in the next coming years.

In addition to consumer subscription spending, researchers also predict the sales of popular smart TV’s will also see a significant 4% increase in sales to around 29 million. Though many have a positive outlook on smart TV’s, the increase in sales is significantly lower then streaming platform spending due to the fact that not all smart TV app software includes the large selection roster of channels that platforms like Hulu, Netflix, and Disney + have.

Another interesting area in streaming that media analysts are anticipating to see in the next coming year is growth in “free ad-supported” video streaming from popular companies such as Tubi, Pluto TV, and Xumo. Though not as profitable as their competing counterparts, many are interested to see how these companies will fair in this industry shift.

Many are calling this enormous growth phase in how consumers receive and choose their media one of the most influential events in media history. What is interesting to see is the amount of selections and control these companies are giving to its customers and the level of satisfaction they will seek from these platforms. A large question that still lingers going forward as these new platforms such as Disney + and Apple TV + unveil their services is how hard will it be to access specific content without these paid subscriptions?

For example, if an individual desires to watch popular TV shows such as “It’s Always Sunny in Philadelphia” which is a production by FX Network (a television unit of the Walt Disney Company), will the famous series only be available through a subscription to Disney +? These kind of questions are what could potentially be make or break for the streaming industry and will place a heavy focus on the strategy and marketing of these media giants software moving forward.


Sources:

https://www.mediapost.com/publications/article/341734/consumer-video-streaming-spending-to-see-sharp-24.html

 

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