Based on my personal experience with the use of streaming services, I feel that streaming platforms such as Hulu and Netflix differ in terms of stand-alone value. While the broad similarity is that the companies provide streaming services, the streaming services offer different content, and customers use features and options in an attempt to compete for subscribers. Some services have an ease-of-use interface that allows the consumer to easily navigate the platform. Other streaming services provide viewers with suggestions for what they can watch based on their watch history. The competition for customers makes the streaming companies innovative features such as notifications and suggestions. The streaming services differ in customer services that they provide to the consumers. Performance expectancy of the streaming platforms significantly differs in terms of streaming quality, speed, and reliability (Wang & Shi, 2022). These features are a priority to the streaming brands because they understand their role in customer experience.
From my experience in streaming services in the past three years, the companies provide almost similar content, with the only difference in quantity. Netflix stands a bit higher in terms of the content that they provide, which can be associated with the company’s financial capacity and experience in content production and marketing (Wang & Shi, 2022). As a result, Netflix is able to fund all types of content production, including films, television shows, and documentaries, and work with many creators worldwide, creating high-quality content. It has been published that in 2024, Netflix will start sponsoring and streaming live events, such as boxing matches. However, all other streaming companies stream and produce similar content (Lobato & Lotz, 2021). Thus, the content types and quality, the diffeffernce depends on consumers’ tastes and preferences.
All the above-stated factors, including the standalone features, the types, quality, and quantity of the content, influence a consumer’s choice on whether to subscribe to a streaming service. Customers highly consider content type and availability as consumers are more likely to subscribe to a service that provides a range of TV shows, original programs, and movies. A different group of consumers argues that the content on the streaming services is all the same, and thus, their decision is highly informed by the price. Customers looking for value for their money prefer low-cost or free content (Wang & Shi, 2022). Some consumers consider the ease of use of the streaming services interface, which determines how easily one can access the desired content. Customers prefer platforms with easy navigation and personalized recommendations. Customers’ decisions are influenced by the performance expectancy of the platform. A group of customers are concerned by the streaming speed, quality, and reliability of the services (Lee et al., 2018). The quality of customer services and social trends also influence consumers’ choices.
Owning content for streaming services comes with its benefits and shortcomings. When streaming services own content, they own the right to use and thus stream the content on their platform, which helps attract viewers. Streaming companies have sufficient resources, which they use to provide creative control to the writers and producers of content, providing better income than the traditional approach. Streaming services ensure that their content is easily distributed worldwide as long as the consumers have subscribed, compared to the traditional distribution method (Lobato & Lotz, 2021). When the streaming companies own the content, it makes it flexible and convenient for viewers to watch their favorite content on demand.
When streaming companies own the content, content availability becomes limited. This is because only the subscribers have access to the content, and some might not be available in certain countries. Consumers make up for the cost through the monthly subscription to ensure access to exclusive content. The subscription companies keep increasing their prices, and some revenue generated goes to producing new content.
The market is likely to eventually choose the “winners” in the streaming business. The high level of similarity in content types and the similarities in prices will slowly push consumers toward a few chosen streaming companies. In addition, some of the streaming brands have been employing anticompetitive business practices, thus gaining an advantage over competitors and attracting subscribers from other platforms (Pakula, 2020). The migration might cause some of the businesses to exit the market. The streaming industry is a relatively new sector since most streaming services are less than 10 years into the business. Consumers are still exploring and are more likely to make similar choices, which means they will soon or later choose the most attractive businesses. Others will be forced to exit the business due to declining subscribers and revenue. The existing companies might be forced to sell their services or products to the “winners.”
References
Lee, C. C., Nagpal, P., Ruane, S. G., & Lim, H. S. (2018). Factors affecting online streaming subscriptions. Communications of the IIMA, 16(1), 2.
Lobato, R., & Lotz, A. (2021). Beyond streaming wars: Rethinking competition in video services. Media Industries, 8(1), 89-108.
Pakula, O. (2020). The streaming wars+: An analysis of anticompetitive business practices in streaming business. UCLA Ent. L. Rev., 28, 147.
Wang, K., & Shi, X. (2022, April). Investigation on Competitive Dynamics in Video Streaming Market. In 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) (pp. 1987-1991). Atlantis Press.
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