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Changes That the Video Streaming Industry Is Predicted to Experience in 2023

The video streaming industry is constantly evolving. Trends within the industry are also changing to meet market demands. Content providers need to keep up with the times. Otherwise, they lose the battle and are out of the game.

If they don’t manage to keep customers interested, they lose them. Many viewers turn to more advanced video streaming providers that offer a new experience.

Let’s observe some of the main trends and changes that the video streaming industry is predicted to experience in the near future.

Advertising Is Ruling the Game

During the COVID-19 pandemic and a bit later, subscription-based VOD (video-on-demand) streaming was extremely popular among viewers and providers. People could have several subscriptions to various streaming services. Subscriptions gave them an opportunity to binge-watch as many videos as they wanted. Moreover, they can be easily canceled at any time.

Gradually, this high demand decreased because of the return to normal post-covid life. Viewers now spend less time at home due to coming back to work from office mode. That’s why they don’t need multiple subscriptions anymore and cancel most of them.

According to researchers, the growth will happen to VOD platforms that embed a hybrid monetization approach – a combination of SVOD and AVOD/FAST. Some major video streaming platforms have already implemented such an option.

For example, Netflix introduced an ad-based tier in response to the loss of around 1.2 million subscribers in the first two quarters of 2022.

Moreover, Netflix is keeping an eye on the FAST (free ad-supported TV) option. More customers turn to FAST services, and the company is considering attracting these people with a new model.

Rising of Niche Streaming Services

Niche streaming services concentrate on one topic or genre and broadcast videos within it. For example, Crunchyroll offers only anime to its viewers, and Shudder is for horror movie fans.

Such services seem to appear every day. Niche streaming platforms cover the topics and fill the gaps that major video streaming players don’t focus on. They are more specific.

These niche streaming platforms are unlikely to displace huge platforms like Netflix or Disney+. However, combined all together, they take a significant market share.

The Battle Against Piracy is Ongoing

In the Internet landscape, it is possible to steal and sell content created by other providers. Some people cut their expenses by turning to pirate video streaming services. A business loses revenue in this case.

According to experts, people will likely consume videos via illegal services. You will probably need OTT solutions with appropriate security measures.

Content Delivery

It is still critical to scale in the video streaming industry, especially when it comes to broadcasting large events. When millions of people switch to streaming simultaneously, the servers using the just-in-case model produce waste across infrastructure, cloud, and CO2 emissions.

Just-in-time processing may become an essential feature for streams. This model provides the infrastructure resources that are needed at the very moment.

Final Thoughts

The video streaming industry is experiencing changes year after year. Each aspect of video delivery can be enhanced and optimized to provide a better experience to both businesses and consumers.

The demand for content delivery, the rise of niche services, and the AVOD monetization model are just a few of the many trends and changes that are going on in the industry. Consider them all and decide what suits your business the most. It is important to constantly evolve and keep pace with the times.