Competition Heats Up: Who will Emerge Victorious?
In the rapidly evolving world of entertainment, streaming platforms are finding themselves at a crossroads. With the market exhibiting signs of saturation, particularly in the Western world, these digital powerhouses are increasingly relying on advertising revenue to stay afloat. This shift towards hybrid models, which combine subscription services with advertising, is a response to the significant costs associated with improving user experience, developing or acquiring technology, and marketing expenses.
A study by Micaella Feldstein, Tech & Data Specialist, provides insights into the strategies adopted by streaming platforms and the competitive landscape. The research reveals that generating additional revenue has become crucial due to heavy investments in content diversification, purchasing broadcasting rights for sports events, and signing exclusive agreements.
Streaming giants like Netflix, Joyn (ProSiebenSat.1), and Rakuten TV are leading the charge. Netflix, with its high-quality exclusive titles, remains the market leader in both the international and German markets. Joyn, on the other hand, is showing strong growth through increasing reach, watch time, and original formats. The platform focuses on localized content and reality shows, aiming to cater to a wide audience.
Rakuten TV, meanwhile, leverages a strategic mix of transactional (TVOD), ad-supported (AVOD), and free ad-supported streaming channels (FAST). The platform also boasts a growing B2B enterprise division, connecting advertisers, content, and audiences. Key success factors for these platforms include exclusive high-quality content, diversified revenue models, strong original/niche programming, and effective audience targeting and platform innovation.
However, streaming platforms face numerous challenges. Data protection, combating piracy, safeguarding sensitive audiences, financing national productions, and ensuring responsible use of AI are just a few of the hurdles these digital giants must overcome. The health crisis has also permanently transformed the way users entertain themselves, with streaming platforms spending substantial amounts of money to adapt and innovate.
Competition among streaming platforms is fierce, not just among each other but also with other forms of media like linear television channels, video games, and social media. To stand out, service differentiation is crucial, achieved by expanding content offerings and improving user experience.
As the streaming landscape continues to evolve, one thing is clear: the battle for survival and success is far from over. To learn more about the strategies and players standing out in the streaming platform market, Micaella Feldstein's study is available for reading.
