As the streaming landscape continues to evolve rapidly, it is becoming increasingly reminiscent of the traditional cable model it once aimed to replace. This shift is evident in the talks of platform bundles, the introduction of ad-supported plans by major streamers, restrictions on password sharing, and a focus on live sports coverage. The primary goal of exponential subscriber growth, driven by the lockdowns during the COVID-19 pandemic, has now transformed to a focus on profitability as demanded by Wall Street. The strategy seems to be leaning towards depth rather than breadth, with many streaming services opting to shrink their content libraries to reduce licensing fees.
This changing dynamic in the streaming industry has led to a clear divide between major companies that act as buyers and sellers of content. On one side, there are companies like Netflix, Amazon, and Apple, which primarily license content from other studios to enhance their streaming libraries. On the other side, we have Disney, Universal, Warner Bros. Discovery, and Paramount, who rely on their extensive legacy content to build their services and also profit from auctioning it to the highest bidders. This distinction highlights a fundamental shift in how streaming platforms approach content acquisition and distribution.
The trend of narrowing content libraries among streaming services signifies the need for greater differentiation to stand out in a crowded market. In the past, most platforms pursued an “everything to everyone” approach, resulting in a lack of uniqueness across services. To address this issue, companies are now advised to analyze their subscriber preferences and acquire complementary shows and films that have not been extensively licensed. This strategy has proven successful for smaller streaming services like BritBox and Shudder, which have carved out niches in British dramas and horror content, respectively.
By analyzing user data and content preferences, streaming platforms can identify opportunities to expand their libraries strategically. For instance, Netflix could consider adding nostalgic sitcoms like “Fairly Odd Parents” and “Hey Arnold,” along with other popular titles to cater to a diverse audience. Similarly, original shows on Apple TV+ could complement existing series from competitors like Warner Bros. Discovery and Netflix, creating a more cohesive viewing experience for subscribers.
The key to success for streaming services lies in offering a personalized viewing experience tailored to the individual preferences of their audience. Platforms like Disney+ and Hulu have excelled in curating family-friendly content and feel-good sitcoms, respectively, to attract specific demographics. By leveraging data analytics and consumer insights, streaming companies can make informed decisions about content acquisition and production to retain and engage their viewers effectively.
Different streaming platforms have carved out unique identities by focusing on specific genres and themes. Universal’s Peacock offers a plethora of crime dramas and medical series, while Paramount+ is the go-to destination for sci-fi enthusiasts. Warner Bros.’ Max has built a reputation for high-quality prestige shows like “Game of Thrones” and “The Last of Us,” appealing to younger audiences. These specialized content offerings help platforms differentiate themselves in a highly competitive market.
The evolution of streaming services in the era of content licensing is reshaping the industry landscape and challenging companies to adapt to changing consumer preferences. By strategically acquiring and curating content, streaming platforms can differentiate themselves, attract new subscribers, and ultimately drive profitability in a crowded market. The future of streaming lies in offering personalized and diverse content that resonates with viewers, creating a unique viewing experience that sets them apart from competitors.