On the consumer end, people have known that streaming services have been struggling for some time, whether it be announcements of layoffs or TV series getting canceled too soon. However,recent statements from an industry expert show that things may be even more grim behind the scenes than we thought.
These Streaming Trends We See Won’t Work
In a piece forDeadline, industry insider and lawyer Ken Ziffren discussed how television is becoming far removed from the 2020 landscape, which saw growth and interest in new entertainment driving the streaming industry. Ziffren stated that streaming platforms are going in the “wrong direction” and thatad-tier streaming and focus on live and unscripted content will not be enough to move the industry forward. The growth rate does not match companies' income; one can look at a $9.1 billion hit at Warner Bros. Discovery and $6 billion at Paramount,leading to massive lay-offs.
The State of Streaming: Data Reveals How the Major Streamers Stack Up
With fierce competition in the streaming industry, this is how platforms like Netflix, Max, Prime, and Disny+ compare.
Other streaming services seem to be weathering the storm, with Netflix and Prime managing to stay afloat. However, even streamingservices like Apple TV+ and Disney+ seem more reliant on income from other ventures, such as Disney with their parks and Apple TV under its parent company. Add in the fact that even theaters struggle to bring in viewers (numbers viaWolf Street), combined with an increase in the cost of making everything after the recent SAG-AFTRA strikes, and it is easy to see why Ziffren is pessimistic about the industry’s future as it is.
Why Pay When Content Is Free?
Is the state of streaming all doom and gloom? Not necessarily. Specific models are working, and a streaming service likeTubi is growing considerably. This growth can be primarily attributed to free content and original productions that do not require massive budgetary commitments. Free content is briefly mentioned in the previous Deadline piece discussing Ziffren’s address to the Beverly Hills Bar Association, but it is possibly one of the most understated elements.
Older generations know that the younger demographics are not interested in paid streaming content to the same extent. Where we used to tune into TV when getting home from school,kids are now going on their tablets or phones to check out the latest content on YouTube, TikTok, or other social media platforms for their entertainment. Moreover, the average time spent on YouTube has increased across all demographics (viaOberlo). This points to a shift in content consumption, which arguably boils down to, why pay for content when you can find it for free?
A lot can happen, and it is difficult to predict what streaming will look like in 10 years. The advancement and encroachment of AI could drastically alter how we consume and produce ‘content.’ Still, there are apparent issues facing streaming and, by extension, the very format of television, and it will take a drastic change to ensure the medium stays alive and well in the face of the current problems.
