Streaming companies are doing a lot of things for their consumers, but they are also doing a lot of things to affect the business world. Do you remember Blockbuster or Hollywood Video? Yep. Thank Netflix and Hulu for forcing their unforeseen close. What about going home and turning on your favorite TV program? Unless it’s a live event, there’s a good chance that any program you turn on when you get home is going to be one that you can access without any commercials. These streaming companies have changed the very landscape in which marketing companies, advertising companies, and even video production companies work in.
TV marketing and advertising have yet to dig the grave that Blockbuster did, but the methods and tactics have evolved entirely. Not to mention, video production companies are utilized now more than ever before. All of this is because streaming companies have forced television companies and motion picture companies to give their viewers access to their shows, events and movies from anywhere, at any time.
Accessibility to Movies and TV Shows
We all fell in love with Netflix when they initially gave us a library of movies to watch whenever we wanted (even though we struggled finding what we wanted to watch), but then they started to include TV shows. At that point, Netflix figuratively made a sign that said, “Property of Netflix from 9:00 to bedtime,” and staked it into our heads. While consumers love it, network executives are still brooding over how they can make the needed adjustments.
As Netflix and Hulu continue to not only give subscribers — a keyword we’ll come back to — access to hit TV series but also their own original series, they are pulling millions of viewers away from traditional TV programs. Right now, there are still plenty of traditional TV shows, but that could change. Traditional TV still has a leg up on streaming companies because of live events, but considering the serious competition that’s coming from streaming companies, that could change. As a result, traditional commercial advertising is not what it once was.
Subscriptions and Traditional Advertising
Before the conception of streaming companies, TV programs relied heavily on their rating — the higher the ratings, the more money companies paid for their ads and the more success a network received. However, if a TV series is successful now on a streaming platform, you can be assured that the consumers are going to stick with their subscription. In other words, as long as the streaming companies provide good content, subscriptions are replacing traditional advertising.
Nowadays, companies are having to find different avenues to advertise their products and services. Thankfully, the same abilities that give companies the opportunity to stream movies and TV series are being used to create other content online. This is the new field where advertising is turning to. A big part of the content being creating is in the form of video, and now, as a side-effect to the advertising evolution, video production companies are at an all-time high.
To review, we see that streaming companies are the reason for the following:
Blockbuster and other similar companies going out of business entirely
The subscription model forcing traditional advertising to make way for its reign
Advertising evolving more and more into content and digital marketing
The increased business for video production companies
There are other effects, but for the sake of keeping things short, this is all we will say on the matter. For more on digital content and new marketing tactics, or even video production inquiries, contact us — Fusion 360!