Streamlining the Streaming Giants

As it faces tougher competition from the likes of Disney, Paramount+ and other streaming giants, Netflix reported this week that it is partnering with Microsoft to launch a new ad-based version of its streaming services.

The move is surprising for a company that has previously been against such advertisement-based revenue options. Moreover, they’re not the only one. Disney also has mooted a cheaper ad-based section of its services as well.

This suggests that the streaming industry is no longer resting on its laurels and is adapting their offering to consumers. As consumers drop subscriptions for the first time since their inception owing to a cost-of-living crisis and rising inflation rates, large streaming giants are forced to adapt with cheaper alternatives.

Furthermore, they must update their content. With Jane Campion – New Zealand director of Netflix’s Oscar winning ‘The Power of the Dog’ – recently saying that Netflix will be forced to be more ‘picky’ about the films they produce, streaming services are pivoting towards a select number of strong brands that bring in the consumers. Stranger Things, Abbott Elementary, Ted Lasso and other recent brands are now the mainstays of why consumers sign up in the first place, and streaming giants need to find a way to retain that loyalty.

For the wider industry, this will mean fewer but potentially larger contracts as streaming giants take out long leases on production and studio spaces to concentrate on a select number of brands. This then represents an opportunity for those suppliers in the industry that rely on these companies. By pivoting to adapting to the needs and wants of the more streamlined service giants, it is possible to take advantage of new business. As the demand for streaming changes, it is important that the whole industry does so as well.