There’s no denying that streaming video has become the new way that most people enjoy entertainment. Services like Netflix, Hulu, Amazon Prime Video, and more have completely taken over to the point that the majority of Americans say they have at least one online streaming subscription.
Despite its quick rise in popularity, many, including entrepreneur and real estate lead investor Randal Gindi of Brooklyn, New York, are left wondering what the future of streaming entertainment will look like. He provides his insight into the growing global market of streaming.
The Future of Streaming is Now
Streaming entertainment has grown exponentially in the last decade, thanks to major players in the world of online entertainment, such as Netflix. However, in 2020 alone, streaming has experienced yet another major growth. The global video streaming market is expected to become a $184 billion industry by 2027. Further, in a Digital Media Trends survey run by Deloitte, 69% of respondents indicated that they have at least one streaming service (this is contrast to the mere 65% that said they possess a traditional cable TV subscription). And Randal Gindi believes this number would be far less if the 30 and under demographic was surveyed exclusively. The rise of streaming video is particularly noticeable in North America and the Asia Pacific regions where the increase in usage of smartphones and tablets is evident. This streaming trend is being further facilitated by the demand for hi-speed internet technologies, such as 5G, which hopes to be rolled out in the near future. Overall, while the future of streaming video is secure, what those video streaming services will look like is a little less clear.
Most Americans you speak to acknowledge that they use at least one online streaming service. However, the question remains, what service are they using. Less than 10 years ago, Netflix was the only major player in the streaming industry. Slowly but surely, others started to crop up, such as Hulu and Amazon Prime Video. Then, in 2019, a few more, in the form of Disney Plus and Apple TV Plus. By 2020, virtually every major American production company or television network has created their own direct-to-consumer streaming video service. Take NBC’s Peacock TV, HBO Max, or CBS’ All Access, for example. Although competition is the backbone of capitalism in America, the result is undoubtedly worse for the consumer. As each new streaming service launches, the big studios are withdrawing content rights from third party streaming services like Netflix or Amazon Prime Video. This means that now, the content on any individual streaming platform is less diverse and possibly lower in quality. In addition, it means that consumers have to pay for multiple subscription services if they wish to access the same amount of content as they were prior. This has left many customers frustrated, which is a bit of a problem for both new and old streaming services. Randal Gindi asserts that many studies have shown customers are only willing to pay for a certain number of streaming services and few go beyond that number. Thus, streaming services either need to lower their prices or find a way to stand out from the crowd.
Randal Gindi on Streaming Bundles
Brooklyn, New York, native Randal Gindi claims that the most effective way for streaming video services to be successful in this new competitive era of streaming is to partner up with other services. Ultimately, streaming services that offer the best, most wide-ranging content library at a reasonable price will be the most successful. In 2020, it’s nearly impossible to achieve this on your own. Netflix is the only streaming service that currently comes close to achieving this goal and even it is losing its clout with its loss of content, specifically caused by HBO Max and Disney Plus. Thus, a re-aggregation of services needs to happen. This bundling of services could happen between video streaming platforms, such as how Disney Plus, Hulu, and ESPN Plus teamed up to offer a subscription to all three for around the same cost as Netflix. Or it could be an aggregation of a variety of services, such as the partnership between Amazon and Roku, where a diverse range of content (video, music, and games) was offered through one subscription. Ultimately, not every streaming platform will be successful. Many will fold, but the ones that last will be those that adapt to the new competitive market and offer the consumers the best mix of quality and value for their money.