By: The BitMar Team.
Streaming has transformed the way in which we consume media, while significantly impacting the economy, and the entertainment industry. Below, are some of the ways in which streaming has changed the game:
Disrupting Traditional Business Models:
Streaming has disrupted traditional business models, in the entertainment industry. Before streaming, people would buy, and/or rent, physical copies of movies and TV shows. They also paid substantial prices, for Cable or Satellite TV subscriptions. Now, people can subscribe to streaming services, for a relatively-low monthly fee; and have access to a vast library of content. This has affected the revenue streams of traditional media companies, and has forced them to adapt to the changing landscape.
According to a report, by the Motion Picture Association, global box office revenues decreased, by 72%, in 2020; due to the COVID-19 lockdowns. However, streaming services saw significant growth, during the same period. Netflix added over 37 million subscribers, in 2020, bringing its total to over 200 million, worldwide. The report also stated that streaming services accounted for 68% of the total home entertainment spending, in 2020 – up, from 58%, in 2019.
Creating New Revenue Streams:
Streaming has created new revenue streams, for media companies. As an example: Streaming services – such, as: Netflix, and Amazon Prime Video – produce original content. This has become a significant source of revenue, for them. This has also created opportunities, for new players in the market; to produce, and distribute content.
According to a report, by PwC, the global streaming market is expected to grow, at a compound annual growth rate of 14.5%, from 2020 to 2025, reaching $184.3 billion, by 2025. The report also states that the production of original content has become a key factor, in driving growth for streaming services. In 2020, Netflix spent over $17 billion, on content; while Amazon spent $11 billion.
Changing Consumer Behavior:
Streaming has changed consumer behavior—particularly, when it comes to how people consume media. For example: People are now more likely to binge-watch entire seasons of TV shows, in one sitting; rather than watching them, week-to-week, on Cable, or Broadcast TV. This has created a demand for more content, and has also led to changes in the types of content that are being produced.
According to a report, by Nielsen, the average American streamed over 142 billion minutes of content, per week, in 2020—up, from 116 billion minutes, in 2019. The report also found that during the COVID-19 lockdowns, people were more likely to watch comedies, and dramas; as well as content that was appropriate for the whole family. All of these variables dictate changes to the entertainment economy, and to all other industries that may depend on it – either: directly, or indirectly.
Impact on Jobs:
Streaming has had an impact on jobs; particularly, in the entertainment industry. While it has created new jobs, in areas – such, as: content production – it has also led to job losses, in other areas—such, as: physical media production, and distribution.
According to a report, by the International Federation of the Phonographic Industry, physical music sales declined, by 23%, in 2020; while streaming revenues increased, by 19.9%. This has had an impact on jobs, in the music industry; with job losses in areas—such, as: manufacturing, and distribution.
In conclusion, streaming has had a significant impact on the entertainment industry, and on the economy—as a whole. It has disrupted traditional business models, created new revenue streams, changed consumer behavior, and had an impact on jobs. As streaming continues to grow, and evolve, it will be interesting to see how it continues to shape the economic future of entertainment.
Until then, next-generation streaming platforms – like: BitMar – may provide you the most affordable form of on-demand streaming entertainment. BitMar provides all-in-one streaming service, for life, for a one-time payment, of: $99.99 USD. It can connect you to millions of on-demand movies, TV shows, channels, videos, and songs (from many different sources on the Web), on the screens that you already own. In fact, BitMar provides access to more movies, and TV shows, than: Cable, Satellite, Netflix, Disney Plus, Max/HBO Max, Amazon Prime Video, Apple TV+, Peacock, and Hulu – combined – and more songs, than: Pandora, Spotify, Amazon Prime Music, and Apple Music—combined. You may learn more, at: BitMar.com.