• Subscribe to our newsletter
The Media Online
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs
No Result
View All Result
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs
No Result
View All Result
The Media Online
No Result
View All Result
Home Broadcasting

Stream Wars: The Empire Strikes Back

by Cory Treffiletti
July 5, 2023
in Broadcasting
0 0
0
A significant shift as streaming appetite increases

In South Africa, 16% of us now have a streaming device/Unsplash/Mollie Sivaram

Share on FacebookShare on Twitter

Disney+.  Netflix.  Prime Video.  Hulu.  Apple TV+.  Max.  Peacock, etc. The streaming video services are in full swing, creating a litany of decisions for consumer to make. 

Over the last few years, the competition’s heated up even more, because each of these services was spending literally billions of dollars to create exclusive content.

That model made very little sense to me, and it seems the industry finally agrees with that statement. How can they commit to spending billions per year on original content? They try to justify it based on new subscriber acquisition, but the math doesn’t add up.

A recent piece by Mike Shields broke down updates to these strategies from the leading streamers, who are now decreasing their investments in original content. Let’s take a look at Netflix as an example.  I love Netflix and have been a subscriber almost since inception. It spent $16.7 billion in 2022 on original content, down from  $17 billion the year before.

The company generates around $31 billion in annual revenue, with a profit of $4.4 billion net in 2022.  While the math would suggest it can afford to spend approximately 50% of its revenue on content, the businessperson in me says that margin is too low for a sustainable business in a highly competitive marketplace.  It makes sense the streamers are starting to cut back.

Netflix has also begun to crack down on people sharing passwords, which was inevitable.  Its initial reports suggest the crackdown is working, but what happens over time when it catches everyone?  Those shared passwords don’t all convert to paying subscribers.

As streamers continue to raise prices, as they each have done in the last year, those averages will come down, and consumers will likely become more selective. Subscriber bases go down, and that leads to lower expenses available for original content.

Beyond the quality of the content, streamers should also be paying attention to user experience.  Most of the platforms work the same, but there are subtle nuances. For example, when I peruse Netflix for something to watch, every pause to check out a movie results in a trailer automatically playing. That gets very annoying.

I also travel a lot, so I queue up movies for the plane. Netflix and Prime movies expire after a certain amount of time, with no alert that would ask me to renew. Much of the time I find out when I am on the plane, stuck with nothing to watch.

Disney, on the other hand, allows me to renew without redownloading the content, making it easier to extend easily while I am traveling.  Differentiation on the basis of experience can be just as valuable as differentiation on the quality of the content.

The streaming wars are cooling off a bit, but it is still a highly competitive landscape, and I would expect there to be some sort of fallout or consolidation along the way. If not, the big winner becomes traditional cable services, as they simply have to message “see, we aren’t so bad and we’re less expensive” in the long run.

What do you think will be the primary differentiation for streamers in 2024 and beyond?

This story was first published by MediaPost.com and is republished with the author’s permission.

 

Cory Treffiletti is SVP at FIS. He has been a thought leader, executive and business driver in the digital media landscape since 1994. In addition to authoring a weekly column on digital media, advertising and marketing since 2000 for MediaPost‘s Online Spin, Treffiletti has been a successful executive, media expert and/or founding team member for a number of companies, and published a book, Internet Ad Pioneers, in 2012.

Tags: ApplebroadcastingCory TreffilettiDisneyHuluNetflixstreaming

Cory Treffiletti

Cory Treffiletti is SVP at fintech leader, FIS. He has been a thought leader, executive and business driver in the digital media landscape since 1994. In addition to authoring a weekly column on digital media, advertising and marketing since 2000 for MediaPost's Online Spin, Treffiletti has been a successful executive, media expert and/or founding team member for a number of companies and published a book, Internet Ad Pioneers, in 2012

Follow Us

  • twitter
  • threads
  • Trending
  • Comments
  • Latest
Kelders van Geheime: The characters are here

Kelders van Geheime: The characters are here

March 22, 2024
Dissecting the LSM 7-10 market

Dissecting the LSM 7-10 market

May 17, 2023
Keri Miller sets the record straight after being axed from ECR

Keri Miller sets the record straight after being axed from ECR

April 23, 2023
Getting to know the ES SEMs 8-10 (Part 1)

Getting to know the ES SEMs 8-10 (Part 1)

February 22, 2018
Sowetan proves that sex still sells

Sowetan proves that sex still sells

105
It’s black. It’s beautiful. It’s ours.

Exclusive: Haffajee draws a line in the sand over racism

98
The Property Magazine and Media Nova go supernova

The Property Magazine and Media Nova go supernova

44
Warrant of arrest authorised for Media Nova’s Vaughan

Warrant of arrest authorised for Media Nova’s Vaughan

41
Social media platforms are replacing Google

Social media platforms are replacing Google

May 8, 2025
CMO to CEO​: 10 top tips from those who’ve done it

CMO to CEO​: 10 top tips from those who’ve done it

May 8, 2025
Media moves: Bonang’s House of BNG pops at launch, WPP launches empowerment initiative for women leaders in SA, MTF goes live

Media Moves: IAS off to AdForum, Lindsey Rayner new MD of Levergy, applications open for Digify Pro Online 2025

May 8, 2025
Crisis Comms 101: Don’t just run to the lawyers

Crisis Comms 101: Don’t just run to the lawyers

May 7, 2025

Recent News

Social media platforms are replacing Google

Social media platforms are replacing Google

May 8, 2025
CMO to CEO​: 10 top tips from those who’ve done it

CMO to CEO​: 10 top tips from those who’ve done it

May 8, 2025
Media moves: Bonang’s House of BNG pops at launch, WPP launches empowerment initiative for women leaders in SA, MTF goes live

Media Moves: IAS off to AdForum, Lindsey Rayner new MD of Levergy, applications open for Digify Pro Online 2025

May 8, 2025
Crisis Comms 101: Don’t just run to the lawyers

Crisis Comms 101: Don’t just run to the lawyers

May 7, 2025

ABOUT US

The Media Online is the definitive online point of reference for South Africa’s media industry offering relevant, focused and topical news on the media sector. We deliver up-to-date industry insights, guest columns, case studies, content from local and global contributors, news, views and interviews on a daily basis as well as providing an online home for The Media magazine’s content, which is posted on a monthly basis.

Follow Us

  • twitter
  • threads

ARENA HOLDING

Editor: Glenda Nevill
glenda.nevill@cybersmart.co.za
Sales and Advertising:
Tarin-Lee Watts
wattst@arena.africa
Download our rate card

OUR NETWORK

TimesLIVE
Sunday Times
SowetanLIVE
BusinessLIVE
Business Day
Financial Mail
HeraldLIVE
DispatchLIVE
Wanted Online
SA Home Owner
Business Media MAGS
Arena Events

NEWSLETTER SUBSCRIPTION

 
Subscribe
  • About
  • Advertise
  • Privacy & Policy
  • Contact

Copyright © 2015 - 2023 The Media Online. All rights reserved. Part of Arena Holdings (Pty) Ltd

No Result
View All Result
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs

Copyright © 2015 - 2023 The Media Online. All rights reserved. Part of Arena Holdings (Pty) Ltd

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?