When Netflix first emerged as a viable streaming service and a direct competitor to traditional cable companies, it was hailed as disruptive. People didn't flock to the app right away, but once they realized they could have on-demand content for less than $10 a month (compared to a cable bill that can climb to $100 or more), they switched. It started happening.
In recent years, the number of cable subscriptions has declined and Netflix has gained immense popularity, so new competitors such as Hulu, Amazon Prime, and others have begun to emerge to share the limelight. But could this new suite of apps share the same kind of crisis thread?
A closer look at the cable drop
First, we need to point out that the cable is not actually dead. There are still several valuable cable providers and a significant subscriber base to take advantage of. In fact, if you search for cable providers in your area, you can probably find a good deal on a monthly subscription.
But cable has fallen out of favor for three main reasons.
- choice. Cable services offer hundreds of channels to their subscribers, but they still can't match the number of TV shows, movies, and original content that Netflix and similar streaming apps provide. When streaming apps began to dominate, on-demand content was still a relatively new concept and cable companies couldn't compete.
- Price was and still is a huge factor. Cable bills can run into hundreds of dollars or more per month, depending on the package you choose and other services you add to the plan. Historically, streaming apps have offered reasonable rates of less than $10 per month. If you only rely on one streaming app, you can save a lot of money.
- Customer service. Streaming services are easy to set up, offer few barriers, and offer excellent customer service when a customer has a problem. Historically, consumers have been disappointed with the way their cable providers handle service, resulting in very low customer satisfaction ratings.
The streaming service crisis
So with all these advantages, how can streaming services suffer the same kind of crisis that cable companies have faced?
The problem is the number of competitors to take advantage of the interest in the space. Media companies are not interested in giving a single company a monopoly on content delivery, so they want to create their own streaming service. That's why many streaming networks have limited their content to only being available on Hulu, and why Disney is launching a streaming service of its own, presumably taking all of its movies and TV shows to other streaming services in the process. Pulling from
In a year or two, we'll have more than a dozen different streaming apps to choose from, each with a different selection of TV shows, movies, and other content, and all of them competing with each other. have been. . This would dramatically reduce the selective advantage of streaming services once again. Every streaming app has a portion of the content that an app like Netflix once had, and to get access to all the content you care about, you'll probably have to subscribe to multiple channels at once. Will be needed.
This will also affect the actual cost of the transmission. Streaming apps are already increasing their prices, but the real issue is how much consumers will pay if they are practically forced to subscribe to multiple streaming apps. If you create a separate account for each of the four streaming apps, you'll quickly reach a total monthly cost that's comparable to what you'd pay for a traditional cable bill. And if you have a problem, you'll need to coordinate information with each of several different companies, making app management a hassle and reducing the customer service benefits of streaming services. Have to do it.
Does this mean streaming apps are dying? Almost certainly not. Media companies are investing millions of dollars in creating the best possible products for their clients, and market demand support their decisions. For years to come, streaming apps are likely to continue to dominate the entertainment world.
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