Streaming services are completely transforming the way we consume TV services today. Netflix has a multitude of 139 million users. These streaming services have gained popularity because of being inexpensive and convenient. In comparison to the cost consumers pay for cable, they gain immediate access to web series and movies at approximately less than half of the cables’ price. AI and machine learning assist streaming services to recommend movies and shows that customers are eager to watch. 80% of the content available to Netflix users comes from customized recommendations. So, let’s dig in, step by step for a better understanding of what is happening and what can happen in the future.
Is cable TV dying or TV culture?
When we talk about TV, TV is not going anywhere, however, the popular question today everywhere, especially during the lockdown in 2020 is: what is the future of cable TV? A lot of consumers have switched to streaming services and cable services witnessed a dip during the COVID-19 wave. What the future looks like for TV and cable services? Well, TV is not going anywhere but yes some factors need to be considered that today the same content is available on smartphones, laptops and tablets etc. This hints that people are not entirely dependent on TV screens today, however, TV has also seen a decline in that sense.
Cable services, for those who still have and don’t plan on quitting on it, have streaming apps where the same content is available when on the go. Spectrum TV, for example, is pretty similar to the latest trending streaming services, it offers contract-free services but fundamentally cable TV service so it becomes even better for those who are looking for a hybrid model.
Content on our screens
On-demand user viewing is another means of making niche content available. There is an advantage as we are able to view episodes in a row without having to wait for a week between episodes. This gives an exceptional user experience as users enjoy uninterrupted content. To avoid the worry about obtaining rights to trending shows, various streaming services now aiming to create content by themselves and have transformed into production studios. This helps them to compete against studios that increase prices or withhold content as well. Netflix spent 85% of its revenue on original programming. It plans to spend approximately $15 billion on original content next year. Original programming has emerged in the world of niche content and increased representation of people and stories that were not considered in the past.
Competing To provide the best Customer Experience
Streaming services have to face fierce increased competition from not just amongst their circle, but from various other entertainment apart from TV. According to a recent Netflix quarterly revenue report, Netflix along with CEO Reed Hastings clarified that “There are numerous competitors, competing in this highly-fragmented marketplace aiming to entertain users and reduce barriers to entry. Our success is derived from how unique our experience is, as compared to other streaming experiences that consumers can resort to. We focus not entirely on Disney+ or Amazon and various others, but our emphasis is on how we can enhance our subscribers’ experience.” Netflix has gained good market share with exceptional customer experiences, customized niche content, convenience, and data analytic strategies. Other streaming services are jumping the bandwagon in order to create profitable customer relationships.
More On Data
Data is extremely precious to Netflix -such that Netflix is in a lot of debt – it is ranked as the 38th most worthy brand. Making enormous profits does not decide your worth. Netflix was ranked number one as the swiftly expanding U.S. brand. They have huge amounts of data that is the future of diverse content. Netflix is experimenting with interactive and diverse content that enables viewers to customize their own adventures. The backbone of the current streaming services—unique content, customized recommendations, and data-controlled information—is bound to grow in the future. And that should be compatible with TV sets or bigger screens.
While researching and reading more on TV, cable and streaming services – we can safely say that TV sets are not going anywhere – they will move from Smart TVs to Smarter TVs but will stay in our lounges. However, the trend of watching TV might reduce because of the streaming services and their availability on several other devices. Streaming services are also popularly being watched on TV screens for a better experience so, it is maybe cable TV service and not the TV culture that shall reduce in the future.