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The Future of Streaming: Adapting to Shifting Consumer Behaviors and Evolving Business Models


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The streaming services industry is undergoing significant transformations in 2025, driven by changing consumer behaviors, evolving business models, and strategic partnerships. Here's a current state analysis of the industry:

Consumer behavior is shifting towards more flexibility and affordability. According to GWI, 52% of US TV consumers are feeling the pinch from rising subscription costs, leading to a demand for more affordable and flexible options[1]. This trend is reflected in the rise of ad-supported streaming, with platforms like Tubi and FreeVee gaining popularity. Additionally, 19% of viewers prefer weekly releases, indicating a need for streaming platforms to offer varied content delivery models[1].

In response to these changes, content providers are adopting bundling strategies to attract and retain customers. Bango reports that one in five subscribers exclusively signed up through indirect channels, such as mobile operators and ISPs, which offer bundled services[2]. This approach is expected to continue in 2025, with top content brands affirming the importance of bundling in driving revenue and reducing churn.

The industry is also witnessing a shift towards live events and sports programming. According to Bango, live events like sports bring continuous engagement and real-time community experiences, making them a goldmine for advertisers[2]. Streaming services like Amazon, Apple TV+, and Netflix are investing heavily in live sports, with Amazon expanding its NFL coverage and Netflix experimenting with boxing and women's football events.

Furthermore, the industry is experiencing a wave of consolidation and rationalization initiatives. PwC reports that the global streaming market is expected to see a five-year CAGR of 14.1% in advertising revenue, driven by the introduction of ad-funded hybrid tiers and the growth of AVOD revenue[4]. This trend is reflected in the merger of Disney's Star India with Viacom18, creating a US$8.5 billion deal in India's fragmented OTT market.

Industry experts predict that 2025 will be a transformative year for the streaming industry. Roku's 2025 predictions report highlights the importance of bundling strategies, advertising-supported tiers, and sports programming in driving subscriptions[5]. Additionally, experts predict that at least one second-tier streaming service will cease to exist as a standalone platform, merging with another streamer or being acquired by a deep-pocketed suitor.

In conclusion, the streaming services industry is undergoing significant changes in 2025, driven by shifting consumer behaviors, evolving business models, and strategic partnerships. Industry leaders are responding to these challenges by adopting bundling strategies, investing in live events and sports programming, and exploring new revenue streams through advertising-supported tiers. As the industry continues to evolve, it is essential for streaming services to prioritize flexibility, affordability, and quality content to meet the changing demands of consumers.
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