Video Streaming Platform Prospects After the Pandemic

The video streaming platform business has grown rapidly during the Covid-19 pandemic. Statista data estimates that the annual investment for streaming services in 2020 could reach US$61 billion. Likewise for pay television which reached US $ 173 billion .The amount of time people spend watching movies and television content causes the global streaming video market to reach US$220 billion last year—a new record in the midst of a year full of transformation.

Apart from the pandemic, the shift in media consumption behavior among the public also contributed to this increase. Coupled with the media merger, broad market choices, to diversify content production and broadcasting.In Indonesia, one of the media giants PT Elang Mahkota Teknologi Tbk or Emtek is known to buy shares in the company Raffi Ahmad and Nagita Slavina (RANS Entertainment). The company's broadcast content is quite well known and has a wide audience base on digital channels. The company has also developed an over the top (OTT) platform, Vidio.

When consumer behavior has changed, will the service remain relevant in the future? So, what are the future prospects for the video streaming market?

Good Prospect

The video streaming business service is said to still have a wide market niche, the prospects for the future are bright. According to Research & Markets Global AVOD Forecasts 2021, the service market could still grow to US$66 billion in 38 countries in the next five years.Not to mention, not a few internet users enjoy content from digital broadcast platforms and pay TV. To illustrate, according to Kantar's TGI Global Quick View, 65 percent of hundreds of millions of digital consumers in 25 countries claim to use streaming services in 2020.

They watch two hours of paid content every day. This means that in a week they have the potential to spend at least 14 hours enjoying content through digital platforms.

Subscription System Becomes a Challenge

However, there are also challenges faced, where the subscription system increases saturation among users. Based on Kantar's projections, the service will find it difficult to survive alone in the increasingly crowded video streaming market. So, collaboration is key.In the United States (US), for example, more and more digital services are partnering with major cable TV operators to secure subscribers. Like Sky embracing Peacock and Paramount and Discovery+.

An example in Indonesia is the partnership between Disney+ Hotstar and Telkomsel at the beginning of its launch—which offers more competitive subscription prices for potential users. Likewise, IndiHome provides WeTV/Iflix services for its customers.

One more thing, the subscription model is predicted to lose its strength in supporting the company's revenue in the long term. Because there are more players. Therefore, Kantar predicts the birth of further diversification of business models among digital streaming platforms in 2022.

One sign of the development of that business model: when Disney chose to launch Black Widow and Shang-Chi in theaters first, only releasing them on the premium service Disney+ a few months later.

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Content Is Still King

In the midst of consolidation between platforms, content is still king for digital streaming service viewers. Content creators and owners can increase licensing fees and higher freight costs in negotiations with platforms.

According to Kantar, several categories have the potential to attract audience interest, namely: sports and e-sports. One thing that has been intensified by Vidio, such as showing badminton and football tournaments.

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Video Streaming Platform Prospects After the Pandemic