The streaming sector is one of the big beneficiaries of the pandemic – here too the restrictions on public life acted as a popular accelerator. And there is still no end to growth in sight, even if the competition is getting tougher.
Spoiled For Choice
Customers can now choose from more and more providers. In addition to Netflix as a first mover and the undisputed market leader with millions of paying users, the sector has also focused on this market since last year. The entertainment giants recently announced an even stronger focus on streaming offers, with the aim of bundling the television and film business with online providers in one division in order to better link the media and advertising business.
The new structure had nothing to do with it, assured the US broadcaster CNBC. It is all about doing the right thing. But that’s only half the story. Instead, the money should be used to expand the streaming business. The dreaded hedge fund manager wrote in a letter to the company that three billion dollars in annual dividends are better to be used than paid out to shareholders. The majority controlled streaming Hulu, which is currently only available in the USA, is also to be expanded. Expansion into Europe is also planned for the coming year.
Will The Subscriptions Soon Become More Expensive?
At the moment, nobody knows how people’s streaming behavior will develop once the pandemic has been overcome and the contact restrictions can be lifted. But most experts assume that little will change in habits. The US investment banks are therefore convinced that streaming providers could raise their prices without losing customers. According to a survey, a majority of Netflix users were willing to pay 20 % more for their subscription in the spring, but increasingly fierce competition has prevented such a step so far. But if the market should actually continue to grow as strongly as forecast, prices should also rise and even more money should be poured into the providers.