Streaming Service News

Navigating the Evolving Streaming Landscape: Strategies for Growth and Customer Retention


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The streaming services industry continues to experience rapid growth, driven by increasing demand for on-demand content and digital entertainment. By 2025, global streaming subscribers are projected to surpass 1.1 billion, with the global streaming market estimated to reach a value of over $184 billion by 2027[1].

Recent market movements indicate a significant shift towards mobile streaming, with mobile devices accounting for approximately 35% of global streaming and mobile video streaming traffic growing by around 27% annually[1]. The rise of smart TVs has also contributed to the growth of streaming services, with smart TVs being the most popular device for streaming video content, accounting for about 33% of streaming hours[1].

However, the industry is also facing challenges, particularly with regards to pricing. The phenomenon of "streamflation," which refers to the gradual increase in subscription prices driven by inflation, market volatility, competition, and password sharing, has led to customer dissatisfaction and a rise in subscription cancellations[2]. To mitigate this, companies are adopting strategic pricing strategies, including precision in pricing adjustments, customer communication and transparency, and adaptive pricing strategies that adapt to market conditions and consumer behavior[2].

In response to these challenges, industry leaders are rethinking their offerings to prevent subscription churn. For example, Netflix and Disney+ have introduced ad-supported plans, which are cheaper than the regular ad-free tiers and enable people to catch the latest and best films and shows while paying less[5]. Additionally, companies are investing in local and regional content to cater to diverse audiences and gain a competitive edge[1].

The video streaming market size was valued at $677.91 billion in 2024 and is expected to increase to $776.07 billion by 2025, growing at a CAGR of 17.9% during the forecast period[4]. The market is driven by increasing demand for video on demand (VoD) streaming services, with the VoD sector expected to hold the largest share of the global OTT revenue during the forecast period[3].

In terms of emerging competitors, the number of streaming services has nearly doubled in the past five years, with over 400 services available globally[1]. New product launches, such as the introduction of virtual reality (VR) and augmented reality (AR) integration into streaming platforms, are also expected to offer immersive content experiences and gain significant traction by 2025[1].

Overall, the streaming services industry is experiencing rapid growth, driven by increasing demand for on-demand content and digital entertainment. However, the industry is also facing challenges, particularly with regards to pricing, and companies are adopting strategic pricing strategies and investing in local and regional content to cater to diverse audiences and gain a competitive edge.
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