When it comes to streaming, Netflix or Twitch are probably the first things that come to mind. However, there is so much more to streaming than these platforms.

Millennials might recall sitting through multiple five-minute ads just to watch a movie on TV. Today, streaming platforms have reshaped entertainment, offering viewers what they crave: uninterrupted content. There was a time when Netflix provided ad-free access to favorite movies and TV shows, but as the industry evolved, advertisements became an essential revenue stream alongside subscription fees. This shift marked a new era for streaming platforms, balancing user experience with profitability. 

Here’s an exploration of this evolution and a look at which platform delivers seamless streaming services.

Evolution of Streaming Platforms

The alternative to streaming a movie on the internet used to be waiting for hours to download a movie. But that was in the era of dial-up connections. Offline, there were options like DVDs that were also available for rent. Netflix also emerged in entertainment, starting with a DVD subscription service. However, getting a movie from them to watch took time and planning as well. A concept like movies on demand did not really exist back then. Furthermore, many other similar services, like MLB.TV also began giving Netflix a tough competition as early as 2002 for several subscribers.

Then, as the internet evolved in its connectivity and service, DVD rentals started becoming redundant. Online ‘video-on-demand’ streaming actively replaced DVD rentals. Netflix also jumped into the video-on-demand landscape in 2007 with Apple TV and Hulu. It became a major player in allowing users to binge-watch their favorite movies and shows whenever they wanted. YouTube also entered the landscape in 2005 and became a popular service on the internet by 2010.

This enabled the streaming arena to experience a transformative shift by 2010. The improvement in internet technology enabled the shift since streaming was exclusively available online. Further advancements and competition kept improving streaming platforms.

Now, multiple streaming platforms exist, both local and international, with content available worldwide. In the previous decade, it all became about streaming giants, popularly known as over-the-top (OTT) streaming platforms, vying for subscriber popularity and testing various business models. All of them were dedicated to providing excellent user experience, covering numerous genres, and providing diverse content. 

This greatly challenged the traditional cable TV companies which led most of the cable providers to start offering bundle deals with streaming boxes. One such example includes Xfinity internet deals and bundles, which usually offer a mix of internet, cable TV, and streaming boxes at affordable rates.

Furthermore, the streaming giants fighting for audience popularity are the pinnacle of the evolution of streaming platforms. Giants like Netflix, Amazon Prime Video, Hulu, HBO Max, etc., try to win streaming wars, a tool to gauge their popularity and profitability in the streaming arena. 

This constant competition has given birth to various streaming trends that aim to attract subscribers and improve user experience.

Recent Trends in Streaming Platforms

The global streaming market experienced a massive boom in the last few years. This boom was characterized by the pandemic, which pushed people to find solace in binge-watching, and the various ongoing strikes in Hollywood and the entertainment industry. 

The streaming industry’s collective worth was $107 billion in 2023, and it is expected to grow in the coming years. 

This growth can be attributed to various factors. An important one is the transformative trends that are improving the industry. Explore some of these major trends below:

1. Original Content

What started as platforms offering TV shows and movies on demand has evolved into so much more. Most OTT streaming platforms now have in-house productions, also known as originals. These original movies or TV shows are exclusively available on their own streaming platforms. This is a great strategy to attract more subscribers to the subscription video-on-demand (SVOD) platforms because they won’t find them anywhere else. Moreover, it is also a great way to keep the content diverse and the audience interested. 

2. Ad-Supported Models

Advertising video-on-demand (AVOD) is a popular trend in the streaming industry. It uses ads as the primary source of finance instead of subscription fees. This enables subscribers to afford a streaming service without paying heavy subscription fees for the cost of watching some ads. It is also a great way for streaming companies to earn more revenue. Netflix, Hulu, and HBO Max are some of the platforms that use this model.

3. Niche Streaming Services

Niche streaming allows users to access content from specific categories or genres. It caters to audiences with specific interests, and these platforms are a great way for users to find otherwise unavailable content. Niche streaming services can stream TV shows and movies from a variety of genres, such as horror, fantasy, etc. Many niche platforms cover Sports, like ESPN+ and Fubo TV. Other popular niche platforms are Shudder for horror and Crunchyroll for anime. 

4. AI-Enabled Content Suggestions

Just like Artificial Intelligence (AI) has infiltrated other industries, it is also used in the streaming industry. Many streaming platforms have started using AI and Machine Learning algorithms to personalize content suggestions. Streaming platforms utilize user searches, likes, and preferences to create a personalized recommendation system tailored to individual interests. This lets users find good stuff to watch without endless scrolling.

Streaming in the US

Streaming has evolved to become an integral part of American lives. Many major streaming platforms started in the US, making streaming popular among Americans. 

Here are some statistics from a Forbes survey showing the state of streaming in the US:

• Every month, Americans spend an average of $46 on streaming platforms.
• Netflix is the most popular streaming platform in the US.
• 90 million people in the US pay for music streaming subscriptions.
• 99% of US families pay for at least one streaming service.
• On average, Americans dedicate three hours and nine minutes to streaming every day.

Published by: Khy Talara