Streaming Evolution: Beyond Originals to Mixed Slates

Calling-card Originals, opulent in budget and visuals and rich in compelling plot, were first made the go-to metric for streaming excellences with Netflix’s release of House of Cards, and for a short while the ability to provide a constant stream of these compelling and unique titles was enough to make for streaming excellence. However, the market- and the world at large- has changed a lot in that same decade. Streaming services have expanded exponentially, attention spans have officially shortened, and there’s more and more sources of entertainment wherever you turn. It appears the modern subscriber wants more. To keep those precious subs, diversity appears to be the key. Our expert entertainment attorney, Brandon Blake of Blake & Wang P.A, takes a look at the future of streaming.

What People Will Pay For

Obviously, what thrives is what people will pay for. Fresh film and TV series have been enough to boost subscriptions to streaming services to date, but the indications are strong that this is no longer enough. The modern consumer expects to be able to access all this, with added sprinkles of gaming, audio (especially the booming podcast market), sports and news on tap.

This is backed by recent data from a Publisher’s Clearing House survey of 15,000 Americans. Asked simply what they would pay for in subscriptions and bundles, quality TV/Film fare definitely still dominates, pulling in 39% of results. However, it is also achingly clear that quality programing is no longer seen as a differentiator. 

Of course, we knew this already. The days when Netflix Original generated excitement are long past. Now every service has quality original offerings to put on the table. And with the binge consumption model as popular as ever, a great TV series or hyped film is certainly enough to bring everyone to the yard. But it’s no longer what’s going to keep them subscribed.

Beating Churn

In the last year, subscriber churn has hit something close to 30%. Going forward, the focus on subscriber retention, over mere subscriber signup, is likely to become a critically important metric for services.

Sadly, this also means that the rising trend to diverse options does rather favor the tech giants that have encroached on entertainment spaces. We’ve now seen how easily giants like Amazon and Apple are using bundling to both attract new subscribers and entrap existing ones. This is likely also a driving factor behind Netflix’s recent partnership with Microsoft to power their new ad-supported tier, and we expect to see some bundled product offerings between the two in the future, possibly centering on Microsoft’s gaming divisions. Netflix has been trying to move into the gaming space for a while now.

Currently, one of the highest demographics willing to pay for entertainment at all is the 18-34 bracket. This makes sense- they typically have been raised on digital entertainment, and while they may not be the top earners, often have more freedom for discretionary spending in their income. However, they are also the market most demanding of diversity in that entertainment, not mono-cultures of genre or type.

Overall, it’s an interesting evolution of the streaming space, and one to watch carefully.