Over the past decade, the entertainment industry has been revolutionized by various streaming platforms and entertainment companies. Platforms like Netflix, Amazon Prime, YouTube, and Hulu have grown into global superpowers, competing with not only each other but with other traditional television networks and cinemas as well. But where did we all begin? More importantly, what will come next?
Streaming services started in the early 2000s with the rise of high-speed internet and the decline of old-day physical media like DVDs. Services like Netflix initially operated as DVD rental-by-mail companies. The convenience of having movies delivered to your door was a revolutionary service that immediately became extremely popular. In 2007, Netflix introduced its new streaming service—viewers and customers could watch movies and TV shows without waiting for a DVD to arrive.
This caused a monumental shift in the entertainment industry. Customers no longer needed to physically store DVDs and movies, and they had more freedom to choose when, where, and how they would watch movies and TV.
However, Netflix’s monopoly was soon to be challenged. As streaming services gained popularity, competition intensified. Netflix, Hulu, and Amazon Prime began competing for subscribers by licensing popular shows and movies. However, licensing agreements were expensive and temporary, which led to the next big evolution: original content.
For instance, Netflix’s “House of Cards” in 2013. By producing its own content, Netflix could differentiate itself from its competitors. Also, it would retain full ownership of its shows and movies to keep more subscribers on its platform. After the success of “House of Cards,” the golden age of streaming originals arrived: “Stranger Things,” “The Handmaid’s Tale,” “The Marvelous Mrs. Maisel”… More and more individuals subscribed to streaming services, including audiences from other countries outside of North America and audiences that speak different languages.
This strategy proved so effective, that nearly every major platform followed suit. It also resulted in a cultural shift: binge-watching entire seasons, casual conversations about last night’s latest episodes…
However, a new problem became apparent. Disney+, HBO Max, Paramount+, and countless other platforms offered exclusive content and asked customers which platform to choose. Customers become exhausted from various subscriptions, and the cost of various subscriptions on different platforms is exceedingly high. As a response, customers may turn to illegal downloads, pirate sites, or unauthorized streaming sites.
The future of streaming is likely to be shaped by a combination of technology, content, and consumer behaviour. For instance, as competition becomes fierce, we may see acquisitions among streaming platforms. Smaller companies may be acquired and absorbed by larger ones.
For another example, streaming platforms may be increasingly investing in international markets and producing content in multiple languages. Shows like “Squid Game” caused international trends and gained numerous global audiences, demonstrating the potential of non-English content.
Streaming platforms have come a long way since the early days of DVD. They have redefined how we consume media and reshaped the business models of the entertainment industries. With increasing competition, shifting consumer expectations, and technological and algorithmic advancements, we will witness future changes in streaming services in the next decade. We will see how companies innovate to capture the hearts and money of audiences.
