In a relatively short time, streaming has upended the TV viewing habits of a global audience and is likely to continue to disrupt the market. To mark the start of the new year, we’ve made 3 key predictions for 2022.
1. The line between traditional TV and video on demand will continue to blur
Lines have been blurring since the rise of catch-up TV. BBC iPlayer has just celebrated its 14th anniversary – so this is a deep trend. We believe that this boundary between linear and non-linear will continue to become ever more blurred with, for instance, the emergence of FAST channels, or Netflix Play Something… The technology available to anyone publishing video will increasingly enable hybrid models of delivering video.
2. Operational efficiency will be key to long term success and profitability
Competition will be tight and churn high this year, as more and more services emerge and battle for viewers’ time. It’s clear that in order to succeed, streaming services need to make sure their operations are streamlined and efficient. This will allow them to experiment with new business models, expand into new territories and ensure costs are predictable – leaving them with more to invest in content and marketing. Businesses running on legacy systems – often built initially for linear TV – will find it hard to keep up.
3. Regional competition between global players and local services – is there room for both?
Global streamers such as HBO Max will continue to focus on subscriber growth, with all the might of their brands and back-catalogue. Still, mid-size streamers can perform well with adaptable and flexible business models, and expert knowledge of the territories they operate in. The success of NENT’s Viaplay – both in its traditional Nordics markets, and beyond – shows it can be done!
We look forward to seeing what 2022 has in store for the industry and all of its key players…