We are in a transition period for streaming. Although user growth is slowing and major players are looking to consolidate, the long-promised dream of profitability finally appears achievable (especially for Netflix).
If so, this is a perfect opportunity for The New York Times to interview some of the industry's biggest names, including Netflix co-CEO Ted Sarandos, Amazon's Prime Video chief Mike Hopkins, and IAC Chairman Barry Diller, about what's coming next. .
There seems to be broad agreement on most major topics: more advertising, higher prices, and fewer big changes for Prestige TV. These changes are integrated into a shift toward profitability rather than growth at all costs. The initial prices of many streaming services may have seemed unsustainably low at launch, but they were. Prices have steadily risen, and streamers have also introduced cheaper subscription tiers for viewers who want to watch ads.
In fact, some executives told The Times that streamers will continue to raise the prices of their ad-free tiers to entice more customers to sign up for ad-supported subscriptions.
The growth of ad-supported streaming may also impact the types of movies and shows that are produced. Because advertisers generally want to reach the public. Think back to the heyday of ad-supported network TV, which offered endless shows about doctors and cops. That compares to subscription-supported HBO's more ambitious fare.
These changes are already underway in streaming, but executives insist they're not giving up hope of finding the next 'Sopranos' or 'House of Cards.' Sarandos (who is already backing away from his decade-old boast that Netflix “wants to be HBO before HBO becomes us”) says Netflix “can make luxury TV at scale,” but adds, “We only want to make luxury TV.” “It’s not about making things,” he added. .”
Likewise, Hopkins said at Prime Video, “Procedures and other proven formats help us, but we also need big changes to get customers to say, 'Wow, I can't believe that just happened,' and for people to have their say.” . friend.'”
Other less surprising predictions include increased investment in live sports (“the simplest and most exciting thing,” according to Warner Bros. Discovery board member John Malone), increased bundling, and the closure or merger of some existing services. There appears to be a consensus among executives that the streamer needs at least 200 million subscribers “to become big enough to compete,” as former Disney CEO Bob Chapek put it.
While some of these changes are welcome, they reinforce the perception that streaming won't be all that different from the traditional cable TV ecosystem, at least as envisioned by the executives currently running the business. Some things may be better (on-demand viewing), some may be worse (compensating writers, actors, and other talent), and there may be other players at the top. But in many ways, it will feel just like your old TV.
