TRENDS IN VIDEO MARKETS
TV viewers have more options now than ever before, as the market finds new ways to meet their demands. Here are a few of the more significant trends in video distribution, and how they affect the way you watch TV and movies:
Digital Syndication
Scripted TV shows usually follow long story arcs- and they age quickly. A few solid hits, though, remain popular with the public long after they’re first aired. Studios and broadcasters earn more money from them by licensing large blocks of episodes to cable networks. Some of the more popular syndicated shows include Seinfeld, Jeopardy!, and The People’s Court.
Though a syndicated show is seldom as popular as the original series, it is profitable because the studio doesn’t face new production expense.
Syndication is not new. It has existed nearly as long as the cable TV industry. What is relatively new is digital syndication. Content providers have begun to license older shows for dedicated steaming platforms such as Netflix, DirecTV Now, and Sling TV.
Streaming of Live Sports
In 2015, the NFL licensed Yahoo to stream a live game between the Jacksonville Jaguars and the Buffalo Bills. Yahoo had exclusive rights to the game, and streamed it world-wide. The game was between small-market teams in an unfavorable time slot (Sunday, 9:30 a.m. EST). Still, it brought in 15.2 million unique viewers.
The game marked the first time a streaming service outbid a broadcast network for an NFL game. Since then, FOX Sports Go and WatchESPN apps provide live streams of games from multiple markets.
Transactional Video
The conventional pay TV model is a cable or satellite subscription. You pay by the month for a large channel package.
One of the most important trends in TV now ditches the subscription model. Some providers charge small fees for each episode or small group of episodes. as little as $0.99. Google Play, Amazon Prime Video, and iTunes are among the vendors offering video on a per-episode basis. Some will offer discounts, up to 40% per episode, for purchase of a “season pass”, access to an entire season of a series.
In either case, you would pay only for the shows you watch, not for channels or channels bundles.
Streaming Direct to Consumer
Usually, cable and broadcast TV networks offer their programming through cable or satellite systems. Some offer them through streaming platforms such as Netflix, Playstation Vue, or Sling TV.
One of the most important new trends in the business is cutting out the middleman. Content providers are increasingly likely to offer their shows directly to viewers. 20th Century Fox, ABC-Disney, and NBC Universal opened the way in 2005 by forming Hulu.
This year, the CBS Corporation launched CBS All-Access, and HBO launched HBO Now. These are stand-alone video services that don’t require cable or satellite subscriptions.
Authentication
Authentication is likely to be the most enduring of trends in the video market. It is essential for newer platforms that enable streaming on multiple devices. If the device you want to stream with is not the one you enrolled with, how does the provider know you’re a customer?
Video services rely increasingly on authentication to identify customers and log them in. In most cases, this means you enter a user name and a four-digit code.
The advantage for you is that you’re not limited to the video services own devices, and you can more easily use your service away from home.
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