Sprockit launched its new Thought Leaders webinar series on Thursday, January 30th. Over the course of this series, Sprockit will highlight insights on today’s market trends, challenges, and opportunities in media, entertainment, and technology brought to you by the best experts in the industry.
In this inaugural webinar, Patrick Donoghue and Gerard Kunkel brought their considerable expertise – including previous executive level experience at Microsoft, Comcast, Cablevision, and Time Warner Cable – to a discussion on the “New Era of Streaming: Business Dynamics, Ad Models, and Content”.
Key drivers behind cord cutting: The entertainment landscape is changing quickly, which was illustrated with examples from Amazon, Disney, HBO/Max, and more. Content, cost, and convenience are the most powerful forces of change behind the trend towards cord cutting. In fact, more than 50% of consumers surveyed reported subscribing to a streaming service just for original content. In response, entertainment companies spent $121 billion in 2019 to meet that demand. Cost is also driving viewers to streaming services: the average pay-TV bill is $106, while cord cutters pay an average of $45. Finally, customers want convenience, and improved UX and tech will help firms deliver this through advancements like voice and AI.
What’s next for streaming: Perhaps most exciting is what comes next. As providers experiment with different pricing models and ad experiences, consumers will see big players and new entrants trial different strategies to drive adoption and reduce churn. Consolidation and expansion are on the horizon, while super aggregation is something to watch.
If you’d like more insights from Gerard and Patrick on the “New Era of Streaming,” check out their presentation here.