The rise of streaming services has ushered in a new era of how we consume media entertainment. The last ten years have seen unprecedented growth of these platforms. Be it Netflix, Hulu, Amazon Prime, or any other streaming platform, people are flocking in numbers to onboard these home entertainment channels. Moreover, the current pandemic has only added to the already brimming subscriber base of these platforms. As people were forced to stay home to curb the spread of Covid infection, they turned to video-on-demand platforms in large numbers to quench their daily entertainment thirst. Owing to the rapid rise of streaming services, more and more players are entering the space to cash the popularity. Let’s look at streaming services in more detail.
What are streaming services?
Video streaming services offer their subscribers on-demand videos, movies, and TV series via the internet and deliver them directly to the user’s PC, mobile, or TV. The on-demand availability of the content is the primary differentiator between online streaming services and traditional cable and satellite TV services. These platforms work on a subscriptions model, and users have to pay a monthly fee to enjoy the services. Some hugely popular platforms include Netflix, Hulu, Amazon Prime, Spotify and Apple Music, etc.
The Rise of Streaming Services: Top Players
Netflix can be considered as the progenitor of streaming services. Starting as a DVD rental firm back in 1997, Netflix transformed itself into a video streaming platform by 2005 and began an era of revolutionary growth. Netflix’s annual revenue for 2020 stands at a staggering $25 billion, with a subscriber base crossing the 200 million mark. Another major player in the streaming services market is Amazon which kick-started its operation in the video-on-demand space around 2006. Since then, the platform has grown considerably, and Amazon Prime now provides its services in 200 plus countries. Although Netflix and Amazon dominate the market, other platforms are not far behind. Streaming services like Hulu, Disney+, HBO Max, etc., also boast a vast subscriber base, and more players continue to jump the bandwagon each passing day.
Streaming Services: Why the Unprecedented Growth?
Wider availability of the required ecosystem is the main contributing factor for the extraordinary rise of streaming platforms. A faster internet connection is now available for most of the general populace of the world. At the same time, the rapid increase in smartphone users has further helped spur the growth of the streaming industry. Another critical factor for the revolutionary growth is the concept of the on-demand video itself. Streaming platforms give subscribers the freedom to watch content at their own pace and convenience. Moreover, video streaming allows them to watch their favorite shows and movies on any screen – be it a monitor, a laptop, or mobile.
The rapid growth of the streaming industry is nothing short of revolutionary. The pace at which these platforms are growing is posing a serious threat to traditional TV. However, with the ever-increasing subscriber base and new players entering the space, it’s safe to assume that this extraordinary growth is not going to stop anytime soon.