While consumers continue to cut or trim the cord in favor of streaming services like Netflix and Hulu and streaming bundles like Sling TV and YouTube TV, streamers themselves will need to stay on top of their customer’s demands in order to remain relevant.
According to a new study from L.E.K. Consulting, the streaming market is becoming more and more crowded, with services like Netflix competing with streaming bundles as well as niche services like Acorn TV and the horror-focused Shudder.
That increasingly crowded marketplace is colliding in L.E.K.’s study, which found that four out of five consumers say they have “just the right amount” of streaming services. In other words, services will have to fight to gain market share.
“Despite the prevalence of cord-cutters, subscription streaming services are now the ones that will need to adapt to survive,” says Alex Evans, managing director in L.E.K.’s media & entertainment practice.
“Niche services will need to continually update high-quality content, while ensuring their programming will resonate with their fickle audience. And larger video-streaming platforms must keep an eye on what both traditional TV and emerging players are doing so they themselves don’t get disrupted by innovative content and pricing options.”
The L.E.K. report also found that consumers expect more for less, similar to when music moved from the CD model to the streaming model, and that targeted and niche content do not necessarily ensure success.
There is also an opportunity for streaming aggregators to emerge, combining popular services into a one-stop shop for streaming content.