Video-on-demand streaming platforms, popularized by Netflix, have become key players in the media and entertainment sector, driven by the development of high-speed internet and the increasing number of connected devices. Moreover, the health crisis marked a turning point, permanently transforming the way users entertain themselves.
The market is now showing signs of saturation, particularly in the West, leading to fierce competition not only among the various SVOD platforms but also with other forms of media, such as linear televisions channels, video games and notably social media.
Service differentiation is therefore vital, which is achieved by expanding the content offering and more and more by improving the user experience. Streaming platforms have therefore adopted a strategy that consists of drawing inspiration from social media, which excels at leveraging data to personalize user interfaces and enhance viewer engagement.
Platforms have spent a lot of money diversifying their libraries, producing content, purchasing broadcasting rights for sports events, and signing exclusive agreements. Improving user experience, developing or acquiring technology, and marketing expenses are also significant costs for platforms that often struggle to be profitable.
Additionally, they face other challenges, including data protection, combating piracy, safeguarding sensitive audiences, financing national productions to preserve cultural diversity, and ensuring responsible use of AI.
To finance the heavy investments at stake, generating additional revenue has become necessary, and most platforms have been compelled to rethink their business models. Many are now offering hybrid models that combine subscription services with advertising, making them more reliant on advertising revenue.
Want to learn more about the various strategies adopted? Want to know which players are standing out in this competitive landscape? Read the latest study by Micaella Feldstein, Tech & Data Specialist.
