Video subscription services and their challenges
We are all witnessing the booming of SVOD (subscription video on demand) in recent years. With such a vast amount of content, constantly available at hand, with no limit in viewing time, people’s entertainment, social life, and dating dynamics have been changed. Even new terms like “binge-watching” or “Netflix and chill” are quickly becoming part of our new day to day vocabulary.
As more and more providers emerge to grab a piece of this hot new pie, there comes along the choice paralysis for the users as well. The number of subscriptions per household grew fast at first, then soon stopped. After all, there is a limit everyone feels comfortable paying. No one would be surprised by the peak in HBO cancellation the moment Game of Thrones ended. This is a common challenge for each streaming service to overcome. They need to create quality shows to maintain their users, while people can easily opt-in and out of their subscriptions because the core factor impacting their choices, most of the time, are the shows.
Meanwhile, due to its nature of copyrighted content, SVOD has its geographical restrictions, which caused frustration for many users in today’s world of higher and higher mobility. What if I travel a lot overseas for work? What if we have to move to another country? What if my partner and I are both from a different country from the one we’re living in, and the shows we want to watch are not available in this market? It is, after all, streaming. So compared with cable TV, many people still have a mentality towards SVOD much more similar to that of YouTube. Especially when you’re paying for it, you’d expect to have full access and choice, regardless of where you are.
Just like everything new, as people adapt to the new norm of having SVOD as part of their life, SVOD providers are also finding challenges along the way. What do people want? What makes them willing to pay? And what would make them stay? These are the questions SVOD providers need to constantly ask and tackle.
ADK Insights help businesses anticipate the various challenges that comes along with new trends. To find out more how we can help, please contact Rob.