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idencing frustration with navigating an ev-
er-expanding array of platform interfaces
and subscriptions.
These findings suggest that the stream-
ing industry’s fixation on growth has fu-
eled saturation. While providers continue
expanding offerings, audiences now de-
sire less choice, not more.
Streamlining options into unified plat-
forms or service bundles may become
imperative to reducing subscriber fatigue.
For example, some platforms like Amazon
Prime Video now offer popular add-ons
integrating other major services. Such
moves acknowledge the market’s maturity
by consolidating consumer access rather
than endlessly fragmenting.
Ad-supported content: Preference
for cost savings
Interestingly, saturation accompanies
growing consumer openness to ad-sup-
ported streaming options.
Per Hub Research, nearly 40% of view-
ers now prefer fewer ads in services. How-
ever, two-thirds also express willingness
to accept ads if they reduce subscription
costs. Compared to just six months ago,
audiences exhibit greater inclination to-
wards ad-supported platforms. This likely
reflects economic pressures tightening
household budgets; streaming viewers to-
day appear largely amenable to ads if they
provide savings.
In response, ad-based models are pro-
liferating through both free, ad-support-
ed TV (FAST) services and ad-supported
tiers on paid platforms. However, research
from Kantar reveals slowing adoption for
both FAST and ad-supported VOD in late
2022, despite aggressive holiday promo-
tions. This suggests that while consumers
accept ads to lower costs, they still prefer
paid subscriptions overall.
Successful ad-supported options will
likely balance modest subscription fees
with limited, non-invasive advertising.
Tailoring to demographics:
Gauging generational preferences
Demographic
nuances
also
shape
streaming’s future.
For example, Gen Z viewers have
emerged as a key streaming segment. Per
Horowitz Research, 70% of Gen Z regular-
ly watches full-length TV on streaming ser-
vices while also consuming high volumes
of short-form video. On average, Gen Z
subscribers access about six platforms
— evidence of still-rising adoption among
younger audiences amidst overall market
saturation.
Providers
are
responding
with
youth-centered offerings, like YouTube’s
continued success across age groups.
However, Gen Z preferences remain in
flux.
According to Kantar, free ad-supported
services are gaining appeal compared to
paid subscriptions. Though, as Gen Z earn-
ings increase over time, willingness to pay
for premium, ad-free tiers may also rise.
Still, the key insight is that audiences have
heterogeneous preferences dictated by
demographic factors like age, income, and
viewing habits. Providers must undertake
granular audience segmentation to tailor
offerings accordingly.
Competition from smart TV: The
living room’s new centerpiece
However, streaming services also in-
creasingly compete with tech develop-
ments beyond their direct control — the
rapid growth of smart TVs.
Parks Associates reveals that only 5% of
U.S. households rely solely on tradition-
al pay TV. Instead, smart TV apps have
emerged as the new living room enter-
tainment hub. Per Hub Research, 32% of
viewers now initiate streaming sessions
through smart TV apps rather than exter-
nal devices.
As smart TV adoption advances, their
onboard streaming apps could disrupt
the competitive landscape. Built-in smart
TV interfaces also offer expanded adver-
tising capabilities — leveraging viewing
data to enable more personalized, target-
ed marketing, for instance. Consequently,
streaming players will likely need to forge
direct partnerships with smart TV manu-
facturers to maintain prime placement on
proprietary platforms.
Interactive and shoppable TV:
New methods of engagement
Speaking of TV advertising, streaming
further propels ongoing experimentation
with interactive and shoppable ad formats
aimed at better-engaging viewers. Per
LG Ad Solutions, over 50% of consumers
express interest in using TVs to directly
purchase products seen in commercials.
Younger demographics like Gen Z are es-
pecially keen to embrace transactional
video ads – popularized overseas through
livestream shopping.
These interactive advertisements rep-
resent untapped potential for streaming
monetization beyond traditional pre-roll
and banner ads. They blur the lines be-
tween entertainment content and retail
shopping, delivering hybrid informational
and transactional experiences.
While still in the early days, such inno-
vations foreshadow TV advertising’s con-
vergence with digital commerce amidst
streaming’s ongoing disruption of conven-
tional television.
A consumer-centric future?
Streaming stands at a decisive cross-
roads.
The era of growth through an ever-ex-
panding glut of platforms is over. We’ve
reached peak saturation; consumers are
overwhelmed by a dizzying array of most-
ly indistinguishable services. Streaming
risks collapsing under its own weight if
companies continue pursuing platform
proliferation and mutually assured disrup-
tion.
Survival now depends on actually listen-
ing to what audiences want: convenience,
control, and affordability.
Providers who resist this consum-
er-centric transition cling to an outdated
mindset that takes viewers for granted.
They wrongly assume having the most to
offer equals market dominance. But atten-
tion is finite.
Streaming can only advance by improv-
ing how viewers interact with content, not
drowning them in excess choice.
The path forward is clear for those will-
ing: consolidate, integrate, simplify. Part-
ner with smart TV ecosystems instead of
confronting them. Make ads less invasive.
Experiment with interactivity and transac-
tions.
Dak Dillon is NewscastStudio’s editor in
chief. Dak has covered broadcast technol-
ogy, engineering and design for over 15
years and has practical experience in the
industry including a Promax Gold Award
and multiple regional Emmy nominations.
Continued from previous page
Streaming services also increasingly compete with
tech developments beyond their direct control
— the rapid growth of smart TVs
In this executive Q&A, Dan Goman, CEO
of Ateliere Creative Technologies, shares
his insights on the evolving landscape of
the
streaming
industry. Amidst
rising streaming
prices,
Goman
discusses
the
potential
long-
term effects on
consumer behav-
ior and industry
dynamics,
high-
lighting the push
towards
more
sustainable, prof-
itable, and pre-
dictable models.
How do you see
the trend of soaring streaming prices
impacting consumer behavior and
industry dynamics in the long term?
The trend of soaring streaming prices
could impact consumer behavior by po-
tentially driving users towards models
that are more sustainable, profitable, and
predictable for the industry. This shift may
lead to a new monetization model, possi-
bly resembling traditional cable packages.
What are the key drivers pushing the
streaming industry towards higher costs,
and how sustainable is this approach?
Key drivers of higher costs in the
streaming industry include high content
and operating costs, market saturation,
and decreasing revenues from tradition-
al cable and broadcast sources. This ap-
proach aims at creating more sustainable
and profitable models, but its long-term
sustainability is uncertain.
What is your view on streaming bundles?
Streaming bundles are becoming a com-
petitive strategy as they offer a variety of
content in one package, appealing to di-
verse consumer preferences. These bun-
dles may resemble traditional cable pack-
ages, offering a mix of content but may
limit consumer choice to specific bundles
rather than individual preferences.
The transformation of streaming plat-
forms could lead to a model similar to tra-
ditional cable, known as “Cable 2.0,” which
might reduce the flexibility and choice
that are central to the current appeal of
streaming services.
How might gaming change streaming?
Gaming
could
potentially
change
streaming by introducing interactive and
engaging content, leading to new forms
of entertainment and possibly integrating
with traditional streaming services to offer
a more comprehensive entertainment ex-
perience.
From a technology perspective, what
needs do you see arising from your cus-
tomers and endusers?
From a technology perspective, there’s
a need for solutions that facilitate efficient
and cost-effective content management,
distribution, and storage, especially con-
sidering the growing variety and volume of
content.
How do cloud native technologies
contribute to reducing costs and
increasing efficiencies?
Cloud-native technologies contribute to
reducing costs and increasing efficiencies
for studios by offering scalable, flexible,
and resilient solutions for content storage,
management, and distribution. They en-
able studios to handle large content librar-
ies more effectively and adapt to changing
market demands.
Dan Goman is CEO of Ateliere Creative
Technologies.
Ateliere’s Dan Goman on streaming
bundles and rising costs in market
GOMAN
Key drivers of higher
costs in the streaming
industry include high
content and operating
costs, market saturation,
and decreasing revenues
from traditional cable and
broadcast sources.
EXECUTIVE Q&A