The world may be recovering from the pandemic, but customers' desire to curl up beneath a blanket and watch their favorite on-demand entertainment has never been higher. Although practically all pandemic limitations have been lifted, streaming services continue to take an increasing portion of the entertainment industry. In fact, monthly user expenditure on streaming services has nearly quadrupled since the spring of 2020. According to recent consumer behavior data, FNB customers have increased their spending on entertainment streaming services by around 70%. Streaming providers such as Netflix, Apple iTunes, Spotify, Google Music, and YouTube earned up to R190 million each month from FNB clients Read on to get interesting insights into entertainment subscription trends, understand the future of the streaming industry, and how you can utilize it.
What Caused the Surge in Entertainment Subscription Spending
It appears that the 2020 mass quarantine has functioned as a catalyst for a shift in consumer behavior. As the world returned to work, people were more eager than ever to cling to a bit of their working-from-home routine. People around the world are spending more on streaming than ever before. So, what explains the shift in spending? Well, price hikes are one factor. Netflix began the process in October 2020 by raising the price of its premium service. Disney hiked the price of Disney+ in March. Disney has also offered ESPN+ two price hikes this year, forcing the service's yearly plan to climb by around $20 in a single year. Streaming services continue to offer value, justifying any previous or future increases. The hunt for major intellectual property is also heating up as each platform seeks a competitive advantage in what it can offer its clients. On top of that, each service's original content slate is becoming increasingly ambitious, enticing viewers to stick to them and continue the spending trend.
What Does This Mean for Businesses Worldwide?
In many families, streaming has become the primary method of entertainment. Netflix reigns supreme with over 220 million users, but Disney+ and HBO Max also continue to accumulate substantial numbers. Meanwhile, the increase in user-generated videos is unparalleled. YouTube now boasts more than two billion monthly logged-in users, while TikTok is nearing one billion. As more individuals choose the ease of streaming services, new advertising opportunities develop to reach more households. What does this mean for businesses worldwide, and how can they leverage these trends? Let's find out.
Consider App Development
The rising use of apps proves the surge in entertainment subscriptions. The adoption of a mobile phone or tablet app to connect to streaming video has increased from 25% to 36% in a year. This trend implies the importance of app development for streaming services.
Create New and Informative Content
Consumers frequently desire an element of discovery. Meaning, that users want platforms to provide them with content outside of their primary interests that is novel and surprising. Platforms like TikTok and YouTube utilize advanced user recommendation algorithms to offer their consumers fresh and targeted material. So, the first step is to ensure that your brand has a presence on YouTube, Facebook, Instagram, and other platforms. Next, ensure a steady stream of new and exciting content. These platforms will deliver your content automatically to individuals who are already interested in your brand.
Investment in Video
It's what the consumers want. According to Nielsen's State of Play report, between February 2021 and 2022, Americans' average weekly video consumption climbed from 143.2 billion to 169.4 billion streaming minutes. Additionally, the research estimates that 93% of individuals will expand their use of subscription streaming services during the following year. Long-form material on YouTube and other video streaming applications grew at a comparable rate.
Consider Mobile Device Media Consumption
Smartphones and tablets continue to dominate. People spend more time on their mobile devices than they do watching television. Consequently, streaming providers are improving their systems for mobile use. Mobile applications are available for all of the leading streaming services. These applications have been optimized to keep users interested for longer durations. As a result, people are consuming more video material than ever before. Streaming services are already being integrated with new phone plans, emphasizing the significance of mobile for future streaming service trends. But how does that help you? Well, you can benefit from the increased mobile media consumption by creating mobile-friendly video advertisements and utilizing the advertising channels offered by these streaming services. It is also advisable to emphasize app development, as discussed above.
Profit on Nostalgia
Another interesting trend reveals that while discovering new material is vital to many consumers, nostalgia continues to be a major motivator for most of today's media, and this tendency will not diminish anytime soon. Consequently, reboots, sequels, and large franchises based on the pop culture they grew up with currently dominate streaming. Following the streaming industry, you can also profit from nostalgia in your advertising whenever it is reasonable to do so.
The Bottom Line: Streaming is the Future!
The streaming industry is booming, bringing in more profits than ever. Consumers are happy to pay for at-demand entertainment despite the rising price. Therefore, regardless of the type, all businesses can benefit from understanding the current and emerging entertainment subscription spending trends. Businesses can consider methods to collaborate with live streaming platforms, create innovative apps that entice this consumer market section, or incorporate streaming industry trends into their next campaign for the best results.