Special Edition: Streaming in 2024 – Ads, Live Sports, Movies & More
Jan 27, 2024
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Renowned industry expert Dan Rayburn discusses trends in streaming services, including the rise of ad-supported plans, frustration of sports fans with fragmented content, licensing deals' impact on viewership, and the differences between pay TV and streaming platforms.
Consumers need to prioritize their content preferences and decide which streaming services are worth paying for in order to navigate the increasing complexity and cost of the streaming industry.
Streaming live sports has become frustrating for fans who now have to subscribe to multiple services and face technical limitations, resulting in a less reliable viewing experience compared to traditional broadcast TV.
Deep dives
Rising Prices and Confusion: The Complex World of Streaming Services
The streaming industry has become increasingly confusing for consumers due to the wide array of options available. While there are varying statistics on the number of services the average consumer has, this choice and complexity have made it essential for consumers to prioritize their content preferences and decide which services are worth paying for. Furthermore, the initial expectation that OTT services would be cheaper and offer more flexibility than cable TV has been proven wrong, with streaming services raising prices and even offering ad-supported plans that require additional payment for ad removal.
The Profitability Issue: Streaming Services Are Struggling
While Netflix remains highly profitable, many other streaming services, including Disney, WarnerMedia, and Paramount, are experiencing significant financial losses. The main reason behind this is the high cost of content acquisition and the creation of original content. To address this issue, streaming services have started raising prices to consumers and cutting costs. However, the low pricing strategy initially employed by some services, such as Disney+, has proved unsustainable, leading to a necessity for price increases to ensure profitability.
Sports Streaming Woes: Frustrations and Fragmentation
Streaming live sports has become a major headache for fans, who now need to subscribe to multiple services to access games from different leagues. The sports leagues, focused on maximizing profits, have struck deals with various streaming platforms like Amazon Prime, Peacock, and NBC Sports. This fragmentation has left fans annoyed, especially when games are exclusive to lesser-known or additional paid platforms. Moreover, streaming services' technical limitations, such as inconsistent video quality and streaming issues, result in a less reliable and scalable viewing experience compared to traditional broadcast TV.
Today, we’re talking all about streaming services and the trends affecting customers– from finding our favorite TV series, to when we get to watch Hollywood movies at home, and a deep dive into live sports on streaming. I’m speaking with renowned industry expert Dan Rayburn.
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