As the streaming industry matures, companies are increasingly mimicking the traditional cable TV model, blending their services with FREE Ad-Supported Television (FAST) channels to retain and attract subscribers. This shift comes as streaming prices continue to rise, leading to bundles and tiers akin to the old cable packages.
Shift to Streaming and Initial Disruption
Back in 2006, Netflix pivoted from physical DVD rentals to streaming, recognising the growing trend of digital video consumption. This decision helped Netflix and subsequently other giants like Amazon, Disney, and NBC capitalise on the demand for digital media, threatening the dominance of traditional cable TV.
Netflix further expanded its reach by offering original content in 2012, boosting subscriber numbers significantly by implementing a binge-watching model. Consequently, as streaming platforms proliferated, the number of cable subscribers began to decline, a trend that continues today.
Current Dynamics of Streaming
The popularity of streaming services has led to a saturated market where multiple subscriptions are common. However, the ongoing rise in subscription costs has made it harder for platforms to sustain new subscriber growth. In response, companies have introduced ad-supported options or FAST services, reminiscent of traditional cable, like those offered by Tubi, Roku, and Pluto TV.
FAST channels simplify user experience, providing alternatives to the clutter and frequent ads typical of other streaming services. Their interface, resembling cable TV, provides a straightforward way for users to navigate and enjoy content, suggesting a return to simpler, more traditional interfaces may be what viewers prefer.
The Future: More Bundling and Always-On Channels
In an attempt to retain viewers without overwhelming them with multiple subscriptions, more companies are likely to offer bundles combining different streaming services. Similar to cable’s tiered packages, these bundles are more budget-friendly and have already been incorporated as customer perks by telecommunications companies like Verizon and T-Mobile.
Additionally, platforms may introduce always-on channels, allowing users to watch series without having to select specific episodes, echoing terrestrial broadcast methods. This approach could maintain high viewer engagement and reduce decision fatigue. If the trend toward bundles and always-on channels persists, the streaming landscape will increasingly resemble a modern version of traditional cable.
Emerging Trends and Experiments
- Platforms are also exploring vertical content appealing to mobile users, inspired by the success of social media apps like TikTok. This indicates a growing interest in shorter, mobile-optimised formats such as microdramas.
- Cable TV prices rose gradually, but the increase in streaming service costs has been much steeper, a phenomenon detailed in The Hollywood Reporter.
Further Reading Suggestions
- Read The New York Times’ exploration of the Cable Center museum’s history in Denver.
- Digiday offers insights into the rapid cost increase of streaming services since 2019.
- TheWrap discusses the resurgence of the binge-watching model despite earlier predictions of its decline.
Reporting based on coverage first published by theverge.com.