The Impact of Streaming Services on the Entertainment Industry

The rise of streaming services pops up the standard questions: Are cinemas dying? What will the future of TV be?

The video-streaming entertainment industry has undoubtedly revolutionized the entertainment industry by unbelievably changing the way we eat TV shows and films. Top streaming platforms equivalent to Netflix, Disney+, Amazon Prime Video, and Hulu have made entertainment more accessible than ever before, leading to a drastic decline in watching movies at the cinema and waiting for shows in front of the TV.

As 85% of American households have no less than one subscription to a video streaming service, it is anticipated to see continuous growth in the streaming industry over the next few years. However, attributable to the high pricing rates in other parts of the world aside from North America and Europe, the anticipated growth will come to a halt, but no decrease is anticipated. In other words, when even the continuous growth of the industry stops or slows down, the impact of streaming services on the entertainment industry will remain a hot topic for a lot of more years.

Let’s dive into the evolution of TV and cinema regarding the rise of video streaming and analyze why people prefer to look at movies and series from the streaming service apps on their TVs, laptops, or phones.

Why & How Streaming Services Changed the Television Industry? 

Streaming services have disrupted the traditional television model by investing heavily in original content production. Netflix, particularly, has paved the way with globally known and well-acclaimed series equivalent to Stranger Things, House of Cards, Emily in Paris, Black Mirror, etc. 

With its charming shows and punctiliously designed interface causing to binge-watch, Netflix has compelled viewers to “get addicted” to this latest TV. And many other streaming platforms have done the same thing over the years, since the 2010s particularly.

As a result, the power of traditional media has shifted to those platforms. We, viewers now have a way much broader range of content to select from, and all of them are tailored to private preferences with the help of AI algorithms.

Okay, that’s enough general info. Let’s see the reasons one after the other affecting the future of TV:

Personalization

We all see that streaming platforms have totally modified the game by giving us exactly what we would like to look at. No more being stuck with whatever is on at a selected time. Now, we get personalized recommendations based on our own viewing habits. 

So it’s like having a TV buddy who knows us higher than we all know ourselves, of course, once we don’t share our Netflix account with family or friends. 🙂

Speaking of Netflix, if you would like to learn more about this streaming giant, try our blog post about Netflix’s digital marketing strategy. In that blog post, we focused on the way it managed to achieve such success.

Global Reach and Diversity

Streaming services have utterly blown the doors off in relation to global reach and diverse content. They’ve gone beyond borders, bringing us amazing shows from throughout the world. 

We’re talking about world-famous series like La Casa de Papel from Spain, the mind-bending Dark from Germany, and the super gripping Narcos from Colombia. These shows have turn into huge hits, not only of their home countries but across the globe. 

And with streaming platforms, we’re now exposed to a complete latest world of storytelling and capable of explore various cultures.

Breaking the Traditional Broadcasting Model

Do you remember the days if you needed to rush home or quit what you were doing to catch your favorite show at a selected time? Well, those days seem a bit distant. 

Now we now have the freedom to look at our favourite shows at our own convenience. We can pause, resume, rewatch episodes as desired, and even binge-watch entire seasons in a single glorious sitting, giving us full control over the viewing experience.

Embracing Niche and Diverse Content

Streaming services have embraced area of interest and diverse content that won’t have found a spot on traditional networks. They’ve raised the flag for them and given a voice to stories that always go untold. So, video streaming platforms have turn into hotspots for modern and unconventional storytelling, breaking free from the cookie-cutter formulas of mainstream TV. They’ve created an area where underrepresented communities and unique perspectives can shine. For instance, Sex Education, a Netflix original, is taken into account to be one of the most queerest teen shows ever.

Are Cinemas Dying?

The theater has consistently faced predictions of its death, but today it stays powerful and is regenerating through stand-up shows. The same story can or probably might be valid for the film industry, but cinemas? We don’t think so.

Distribution and Accessibility

Streaming services have revolutionized film distribution by offering a direct-to-consumer model. Gone are the days when filmmakers needed to rely solely on mainstream releases to showcase their work. 

Video streaming platforms became the major players in acquiring and distributing independent movies, giving smaller and area of interest productions a probability to shine. And even the smallest streaming services, the ones merely focusing on independent cinema, have managed to create brand awareness to some extent. For example, 24% of the UK population knows MUBI.

In short, filmmakers now have the flexibility to actually express themselves without the constraints imposed by mainstream expectations, so long as the streaming platforms don’t act like TV giants. 

Such artistic freedom results in the creation of remarkable movies that resonate with audiences on a deeper level. We’ve seen this with Netflix’s Roma and Amazon Studios’ Manchester by the Sea, which earned critical acclaim and Academy Awards. 

Data-Driven Decision Making

Streaming services have mastered the art of data analytics to know what viewers want. They focus on making informed decisions based on consumer behavior and preferences. Therefore, they’ll curate content that resonates with the audience and keep them coming back for increasingly more. This is just not only a win for the video streaming platforms, but it’s also extremely helpful for filmmakers.

Wrapping Up

In the simplest terms, the impact of streaming services on the entertainment industry has been revolutionary.

Netflix, Disney+, Amazon Prime Video, Hulu, and other streaming platforms have fundamentally modified the way we eat content. Actually, they even modified the name of watching movies and series into “consuming content”, which may be one other topic to debate, obviously. They have literally disrupted traditional models, providing viewers with more alternative, flexibility, and personalization. 

With a surge in original content and support for independent filmmakers, these services have diversified the entertainment landscape. As streaming platforms proceed to evolve and innovate, the future of the industry looks incredibly promising, with tons of exciting and interesting content available for audiences worldwide.

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