The entertainment industry landscape is changing. Existing business models are under threat and large technology companies are marginalizing traditional players. At the same time, there is growing pressure from consumers, who are making it clear that these services need to be reimagined as a result of fragmented attention from too many platforms.
A new study by Accenture, which brings together the views of 6,000 respondents from ten countries, finds that:
- 35 percent of respondents have cancelled a subscription with at least one entity among the Big Five streaming services in the past 12 months. And 26 percent say they plan to cancel one - or more - in the next 12 months.
- Nearly three in four (72 percent) respondents say finding content to watch frustrates them, and more than half (55 percent) of respondents feel overwhelmed by the number of streaming services from which to choose.
- 86 percent of consumers are interested in an app that provides them with multiple services they need on one super-platform. And at the same time, it met all of the user requirements for simplicity, customization and variety.
"It's clear that there will be consolidation in streaming services globally, as well as simplification of the customer experience. On the other hand, I am convinced that there will always be a place for quality local content in streaming," says Petr Bucha, Content and Creativity Lead Accenture Song for CE, adding: "Many local viewers would rather watch, for example, the 'Roubal case' than the 'Dahmer case'."
Tough competition
The move to streaming was a challenging but necessary step for traditional media companies. Yet it is still the beginning of the journey rather than the end. In fact, streaming has not brought the rewards that companies had hoped for. And at the same time that media companies have invested heavily in the transition to streaming, the cost of content creation has also begun to rise rapidly. Rising subscription revenues were then only able to partially cover these costs.
In addition, established media firms faced increased competition from well-funded players in the technology sector. The largest of these, with market capitalisations in excess of one trillion dollars, have vastly undercut their traditional media competitors and are able to attract consumers in many other ways. One example is Amazon Prime, which offers not only streaming video (Prime Video) but also video gaming (Twitch), audiobooks (Audible), music (Amazon Music) and photos (Amazon Photos). Surviving in this environment is thus not easy and only those who can adapt quickly to the new conditions will succeed.
Facilitate decision making
The first step to success is to listen to your users. They want to simplify things, not spend an inordinate amount of time browsing multiple apps or platforms to find exactly what they want. In the survey, nearly three out of four (72%) respondents say they are frustrated by finding content to watch.
A quarter of respondents (26%) say they spend more than ten minutes searching for sufficiently interesting content to watch, and more than half (55%) of respondents feel overwhelmed by the number of streaming services to choose from.
Delivering real value
The second step to success is to deliver real value to consumers. This is because many of them don't feel they are getting as much for their money as they would like. Moreover, rising inflation and uncertainty mean that they are more likely to save. Spending on streaming services may then be one of the first things they cut.
Some respondents are already planning to do so. As many as 26 per cent of those surveyed say they will cut spending on subscriptions to so-called "SVOD" (subscription video-on-demand) services, or video-on-demand, in the next 12 months. In contrast, only 18 percent of respondents expect to spend more money on these services than in the past.
In addition to these aspects, there is another rare "commodity" that media companies have to fight for. It is the attention of users. Even 20-minute episodes of sitcoms, let alone longer shows or movies, are now competing for it with short fitness tutorials, gaming or watching videos on social media. However, it seems to be an unequal battle, as these are the ones that users are devoting more and more time to at the expense of traditional video content.
A superplatform for everything
Taken together, these changes in consumer attitudes and preferences clearly point to the need for a single entertainment super-platform that offers a wide range of ways to enjoy content while meeting all user demands for ease of use, customisation and variety.
After all, the numbers prove it. More than eight in ten (86%) consumers surveyed say they would be interested in an app that provides all the services they need on one platform; 41% would be willing to pay for it.
Source: mam.cz
