July 26, 2024

The video streaming market is looking for savings.

Trend Analysis
Szymon Karbowski
The video streaming market is looking for savings.

Over the past five months, the biggest video streaming players: Netflix, Max, Warner Bros. Discovery and Paramount, have significantly reduced their marketing budgets. They have also been more frugal in their spending on TV production, content acquisition and promoting their platforms on national TV. Paid advertising budgets fell by as much as 18% to $216.10 million.

According to many experts and analysts, the decision to reduce the advertising budgets of the major market leaders' original productions was heavily influenced by a change in the habits of consumers who were overwhelmed by too much. Viewers were simply tired of trying to 'catch up' with all the new releases available on many streaming services.  
Increased subscriber churn on individual video streaming platforms may also be another aspect of cost-cutting in advertising and marketing activities. It is not surprising, therefore, to see increased efforts to make packages and subscription prices more attractive. All in an effort to retain as many existing users as possible and attract new viewers. The trend towards conscious investment in content is also becoming the new standard for video streaming platforms in order to retain subscribers.

Consumer expectations are clear and their choices increasingly informed. Viewers are increasingly looking for compelling and varied content in one place, and price is simply a major factor in their decision to subscribe to a particular service. In recent months, many viewers looking to save money have been analyzing the number of subscriptions they have and whether it makes sense to continue with them.

Subscription packages have become increasingly popular recently. One example is Comcast's 'home run' for consumers (announced at the end of May this year), a joint StreamSaver package including Netflix, Apple TV+ and Peacock for current and future Xfinity Internet and Comcast TV customers, launched to counter user retention and share marketing costs.
Another example of a subscription package is the Disney and Warner Bros. Discovery (WBD) triple-play bundle including Disney+, Max and Hulu, wich were launched in the US earlier this summer.
And this is not the only joint venture between Disney and WBD, in this case joined by Fox Corp. A live streaming sports package is due to launch this autumn.

Having several streaming services in one place at a reasonable price is undoubtedly a very tempting option for viewers. However, it is important to consider the balance of the market. Centralizing services in one place can unfortunately lead to a monopolization of the streaming market and is often at odds with the complexity of streaming rights. Competing offerings from multiple streaming service providers give consumers a sense of choice and drive the market.

Detailed analysis of user preferences, targeted provision of thematically diverse content libraries, a seamless viewer experience and flexible bundle offers are now key objectives for all streaming video platforms. The market leaders are fully aware of the challenges they face from the market and consumers. Smaller streaming platforms need to follow the trends and emulate the big players if they want to stay in the market longer. It's clear that the 'bigger brands' are setting the direction for the smaller ones and creating the standards for the industry's activities.

#SzymonKarbowski #StreamVX #videostreaming #Netflix #WarnerBrosDiscovery #Paramount #AppleTV #Comcast #Peacock #Max #Hulu #FoxCrop

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