The latest report from Netflix showed that the streaming giant suffered a loss of nearly 1 million subscribers in the second quarter of the year. For this reason, there are many discussions about what will be the future of streaming platforms.
Netflix continues to lose money – Is the era of large streaming catalogues enticing audiences over?
To be precise, today, many are talking about the end of an era for streaming platforms. But let us take all that and analyse the core problems that streaming platforms have today a little more closely.
Too many choices
The first and most important thing comes when someone tries to decide on which streaming platform he should choose to create an account. You can see that today there are several strong and popular streaming platforms like Netflix, Amazon Prime and Disney+ available to everyone.
In other words, that person has multiple options, and the choice between different high-quality options can be really difficult. For example, another industry with the same problem is the gambling industry. Gamblers have numerous online casinos like 32Red online roulette, being offered as many gaming possibilities as possible. Yet unlike streaming services, online casinos have a diverse list of games to try, so particular genres and types are usually the key requests from the clients.
On the other hand, the streaming platforms actually offer almost the same content. Today, when you create an account with the most popular streaming platforms, you'll have many options available.
This confuses many people since they have thousands of options available for new movies and series, and not everyone can afford to create an account on all the available streaming platforms.
Netflix’s ad-supported tier
As we mentioned earlier, Netflix lost almost 1 million subscribers in the last quarter of the year, despite the fact that the streaming giant released the new season of the viral series Stranger Things. For this reason, the company has decided to introduce a new ad-supported subscription that will be cheaper than the others.
This subscription will be announced in early 2023, and Netflix wants to use it to get back the lost subscriptions. In addition, Netflix has teamed up with Microsoft for this new plan. This way, all the ads that will be shown in the ad-supported tier will come directly from Microsoft.
With this new subscription plan, Netflix wants to offer a budget-friendly plan to those who do not want to pay much for an account on the platform. But what's the deal with subscriptions, and what does Netflix want with budget-friendly plans?
In April 2022, a study estimated that the video streaming market will reach $330 billion by 2030. Is it possible now that the video streaming market will reach these numbers?
As we said earlier, the video streaming industry has suffered a major setback this year, and there are many reasons for that. As we said, nowadays, people have numerous options when it comes to streaming platforms. And if someone wants to watch 2 series or movies that are on different platforms, they have to create an account on both platforms.
But that also involves double payments. And that can be really frustrating for some people. Because you do not want to pay the same amount twice for pretty much the same content (movies and series).
To make a long story short: Video streaming platforms have been the king of tv viewing in the past few years. But with so many new platforms and so many options when it comes to new content like movies and series, the industry has taken a really big hit.
However, decisions and policies like Netflix's new ad-supported tier could help keep people loyal to this type of entertainment. In other words, this discussion may go on for a long time, but it certainly does not look like this is the end of an era for video streaming platforms.
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