Hollywood is rife with rumors on rearrangements based on streaming relationships.
In the larger streaming ecosystem, monetizing this evolving behemoth is key. WarnerMedia sales has launched “House of Max” to develop custom creative content for marketing messages on the new HBO Max ad-supported streaming tier. And Connected TV is forcing advertisers to reassess their media-buying tactics. YouTube disclosed that about 40% of its viewership is on TV screens, which makes some of its content more viable as an alternative to linear TV ad budgets.
These industry rearrangements come as viewers are learning what they like in the streaming universe dubbed “HAANY” (Hulu, Amazon, Apple TV, Netflix, YouTube). A Penthera survey, found that streaming viewers watch two hours and 29 minutes of digital video daily; more than 80% of viewers in 18-to-44-year-old brackets watch on mobile devices while 74% watch via connected TV. But the study also found “frustrations when they stream” — 92% in 2021 compared to 88% in 2020. The most common frustration is rebuffering (cited by 50% of viewers) and slow startup (42), with viewers citing it as a reason to abandon streaming.
Despite overall upbeat experiences during the pandemic, naysayers cite recent subscriber declines at Hulu and Sling TV and slower growth at other streaming providers, which may augur further declines as customers pick favorites.
However, several studies show some streaming viewers are willing to buy multiple services. A Digital Entertainment Group (DEG) study in August found that consumers’ spending on subscription streaming climbed almost 17% to $6.3 billion during the second quarter of 2021 compared to the same period last year — notable because of the huge jump in spending during the pandemic lockdowns.
The changes on both the supply and demand side of the streaming ecosystem affirm that growing pains abound.
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