LONDON – A new study from L.E.K. Consulting says because the streaming market is becoming more crowded, streamers themselves need to stay on top of their customers’ demands in order to remain relevant.
The study found that four out of five consumers say they have “just the right amount” of streaming services. In essence, services will have to fight to grow market share.
“Despite the prevalence of cord-cutters, subscription streaming services are now the ones that will need to adapt to survive,” says Alex Evans, managing director in L.E.K.’s media & entertainment practice.
Evans adds that niche services will need to “continually update” high-quality content to ensure their programming resonates with their audience. “And larger video-streaming platforms must keep an eye on what both traditional TV and emerging players are doing so they themselves don’t get disrupted by innovative content and pricing options,” Evans says.
In a related study, MediaPost News’ 2018 Total Market Media report says baby boomers are cutting the cable cord like their younger millennial counterparts in favor of streaming options like Netflix.
While millennials’ live TV viewing habits are continuing to decline (down 16 points), boomers’ decline in live TV viewing habits are significantly higher, showing a 21-point decline from 2017.
Researchers say the stereotype of the binge-viewing millennial no longer holds true. Now, boomers are binge viewing, too, with a 13-point jump in Netflix viewing over 2017.
In other video marketing news, the annual Global Video Benchmarks Study from video marketing platform Innovid says more marketers are seeking out data-driven video advertising (DDV)
Innovid reports there was a 58-percent increase in the number of advertisers running data-driven campaigns in 2017, and that the campaigns were more effective with a 63-percent life in engagement when compared to non-DDV campaigns.
The study also found a 30-percent increase in the number of advertisers using connected TV (CTV) campaigns, and that the number of CTV impressions rose by 178 percent year over year.
"The most exciting part of this annual study is seeing the market trends reveal themselves in our data – and this year it’s certainly evident with the hyper growth of connected TV advertising and the adoption of data-driven video marketing across all screens," says Beth-Ann Eason, president of Innovid. "We always knew a change would come, but we’re seeing it happen now at an unprecedented pace.”