The Internet has redefined our lifestyle, the change IoT devices have caused in our lives has revolutionized standards of living. Now we live in an age of smartphones, smartwatches, smart TVs, and even smart homes. A concept that was only limited to science fiction films a few decades ago, but it is only thanks to the internet that we are living that technological life.
The internet is not only a technological marvel itself but it has also opened countless new avenues of modern living standards. It is such an adaptable technology that has integrated seamlessly into our personal and professional lives. We talk a lot about the professional benefits of the internet but today we are here to shed light on its entertainment prospects, especially streaming. We are here to discuss how streaming became the undisputed king of the entertainment sector killing competition like TV and Cinema.
Rise of Streaming and Netflix
The Internet created ripples in the entertainment industry when it is first introduced in the gaming ecosystem, the ability of the internet to allow players across the globe to play together in real-time was a feat in itself. After gaming, the internet started climbing the stairs to enter the visual entertainment industry, and its fruition came in the shape of Netflix. Netflix was a platform that shook the entire entertainment industry. First, it killed the billion-dollar home media sector and dethroned a giant like Blockbuster and its next target was cable TV.
The TV services which were enjoyed a seamless run of almost half a century were going strong without any major competition until the emergence of Netflix in 2011. Ever since that, cable TV is also on a steep path of decline and business analysts predict that traditional cable TV will become half of its current market stake as early as 2024. This is because of a rising trend called cord-cutting in which consumers are getting rid of their cable subscriptions and are adopting OTT platforms like Netflix. But in order to enjoy a smooth streaming experience, stable internet is quite necessary, and you can get one for yourself at a very good price here.
Entry of Giants in Streaming Culture
Witnessing the sheer growth of Netflix in such a short amount of time many broadcasting giants saw the potential in this business model and decided to capitalize on it. So as a result they launched their own streaming services in order to capture a huge market that was moving towards streaming, and also to avoid creating a monopoly by Netflix. Now there are many streaming services that people can subscribe to. Many giants of the entertainment segment like HBO, Disney, and Amazon have their own streaming services.
This was a move to counter Netflix consumers and offer them unique and engaging content. This resulted in fans of these companies switching to their streaming platforms, most of which didn’t have a choice before, except to go with Netflix. So, in turn, this also increased the overall viewers of streaming services who now had more options apart from just Netflix.
A Shift in Consumer Behavior
A huge benefit that streaming got was due to the shift in consumer behavior. Back in the day people watched TV because a sense of nostalgia was attached to it, but the consumer of today which mostly includes Gen Z and Millennials are born in a fast-paced society and have spent their childhoods with internet-powered gadgets and IoT devices. These growing up youth want fast-paced entertainment options and that too on the go. This is exactly what these streaming options provide them with. Not only they are readily accessible these giant streaming services are smart and that is why they create new and engaging content that appeals to the youth.
This young generation doesn’t want to stick to their TV screens watching boring sitcoms and wait through advertisements they want seasons that they can binge-watch in a day or something they can watch on the go on their smartphones and tablets. So in actuality, it is the shift in consumer’s behavior on which these streaming platforms have perfectly capitalized.
Role of Pandemic
The pandemic also had a significant role to play in this rise of streaming. We have divided this discussion regarding the pandemic into two sections on how streaming affected the cinema and cable business during this world crisis.
Cinema and Streaming
While the pandemic proved to be fatal for not only people in general but businesses as well. This happened because of the resulting lockdowns, that were placed as quarantine protocol to help control the spread of this virus. This led to the closure of any place where there were people in close vicinity. Corporate offices, small businesses, restaurants, cafes, and even cinemas were shut.
Many small businesses were permanently closed and people were pushed to the brink of unemployment. In times like these, when every business was going through a recession it was only the business of streaming services that was flourishing. Not only had it already capitalized on the TV viewer segment, but with the closure of cinemas, the movie business also was a segment that was quickly captured by streaming giants.
Since the closure of cinemas resulted in huge losses for production houses. Many big production companies signed deals with streaming platforms to release their films on their platforms, and now the only entertainment segment which was free from streaming influence in the past was also under the umbrella of streaming giants. This is the reason we saw many big blockbuster films like Black Widow from Marvel and DC’s Wonder Woman 1984 released on Disney+ and HBO Max respectively which were the streaming services owned by Disney and Warner Bros which in turn owned Marvel and DC.
Cord Cutting, Cable TV, and Streaming
With funds hard to come by during the pandemic. People started to look for ways to reduce living expenses and the most redundant expense they found, in this case, were cable subscriptions. Since most streaming services were quite cheap so people decided to get rid of their cable connection in favor of multiple streaming services as this cost significantly less than their cable packages. So the trend of cost-cutting which was already on the rise skyrocketed during the pandemic.
It is safe to say that for many people and businesses the pandemic was a curse but in the case of streaming services it proved to be a blessing in disguise. As the pandemic provided the necessary thrust streaming needed to be the market leader of the entertainment industry.
This market has grown so much that even many new movies are being released on these platforms and with the inclusion of industry giants not only films are being licensed to these platforms but there are many original productions of films and sitcoms that are produced on yearly basis specifically for specific streaming services. Seeing such huge growth it is not difficult to say that this trend is only going to grow in the future. And with no immediate end to the pandemic in view, the closure of cinemas and the trend of cost-cutting is further going to strengthen the position of streaming services.