Expect all major TV stations to have their own streaming platforms by mid-2020. according to Kevin Westcott, vice chairman of Deloitte professional services network. Newcomers include Quibi, WarnerMedia´s HBO Max, Discovery/BBC and NBCU’s Peacock. Both newcomers and stalwarts, such as Netflix and Hulu, will fight for survival with strategies that include the following:
- Bundling – To retain and gain customers, SVODs package incentives for one low monthly price, while consumers benefit by slashing their subscriptions. For 2020, Apple, Warner ́s HBO, and Showtime have bundles or super-bundles poised to launch.
- Partnerships – Brands partner with major streaming platforms to promote themselves. TV and video streaming services partner with brands for credibility and buzz around their flagship series. Deloitte anticipates fewer mega-mergers in the coming years.
- Freemiums and discounts – A growing number of streaming services craft special deals for customers that include student discounts. Of notice is NBCś free, ad-supported streaming product to anyone that subscribes to a pay-TV service. It debuts in the first quarter of 2020.
- Pricing – One way streaming platforms differentiate themselves is through strategic pricing methods to price their services. The year 2020 will see more of this pricing war, with Discovery/BBC likely undercutting even Apple´s lowest rate of $4.99, while NBCUniversal waives its fee for certain subscribers.
- Content – Documentaries are on the rise as are big title revivals and educational and reality shows. Most platforms will continue to prioritize original, quality shows, with Netflix promising to spend billions of dollars on content in 2020.
Since streaming companies handle and/or broker personal data, they will also face increased regulations on data privacy, come 2020. These include:
- The California Consumer Protection Act (January 2020), where internet companies that are based in California or have users in that state will be mandated to disclose the information they collect on users as well as delete that information if so asked.
- Maine’s Act to Protect the Privacy of Online Consumer Information (July, 2020) that will prohibit Internet service providers from using, selling, distributing or permitting access to customer personal information for purposes other than providing services.
- The European Commission will report on the European Union’s General Data Protection Regulation (GDPR) in 2020 to assess its progress. The GDPR mandates companies to provide users with data privacy and data portability.
- The New York Consumer Privacy Act (NYPA) will expand its data breach and security legislation, March 21, 2020.
- The Texas Privacy Protection Advisory Council, created 2018, will present data privacy recommendations, September 1, 2020.
And the good news …
As our own Streamlytics research confirmed, more and more consumers will replace radio and cable TV with streaming subscriptions. According to Statista, there will be 1,115 million users by the end of 2020; that´s more than 70% of American households. The Consumer Technology Association (CTA) reported that consumers in the U.S. will spend about $21.9 billion on streaming subscriptions in 2020, up 24% from $17.7 billion in 2019. Buzzy products like Disney+, Apple TV+, HBO Max, and NBCU’s Peacock will contribute to this hype.
For more information about Streamlytics or to schedule a demo, contact us here.