The so-called “streaming economy†had been accelerating in the last decade, however, it skyrocketed during the coronavirus pandemic, when millions of people around the world found themselves confined to their homes and with many hours to fill their lives. through the screens.
In addition, movie theaters had to close, which favored a trend that seemed solid, but has now stagnated. A report prepared by the Motion Picture Association, a non-profit organization based in the United States established to look after the interests of studios, shows that, in just two seasons, the market for digital productions grew by 36%.
Thus, while in 2019 it barely represented 46%, that is, less than half of the total, in 2021 it already exceeded 72%, more than two thirds. Both feature films and other entertainment content are included in this category of the streaming economy, whether consumed on smart television receivers or through mobile devices, such as phones or touch tablets.
In 2020 alone, subscriptions to streaming services increased by 14%. Netflix, with approximately 231 million subscribers, finished last year as the leader. Amazon Prime (205 million) and Disney (164.2 million) were in second and third position, respectively. However, the problems and threats to the stability of the business remain.
For example, HBO Max canceled or stopped renewing various programs on its platform at the end of the year, including Westworld (science fiction), Love Life (romantic comedy) or Minx (humor). This move was added to the fact that Netflix lost more than a million customers in the second quarter of 2022.
For Professor Luis Cabral, who heads the Department of Economics at New York University, one of the factors that explains these turbulences is “enormous cannibalization” and “great fragmentation” in the industry. For this reason, he adds, there are viewers who are even missing “the old days of cable.”
The main drawback of that model was that citizens had to pay for dozens of channels that they were never going to tune in to. The advantage, however, was that they had a single supplier and didn’t have to worry about anything else. If progress is not made towards greater coordination, Professor Cabral predicts a “bloody battle” that could leave “victims” in the sector.
Paradoxically, this context is not negative for the public, adds the expert, since the current is “the best time to watch audiovisual content in history.” After this statement, the editor of the specialized portal Marketplace, clarifies that the penalty is “that not everyone can afford six or seven subscriptions a month.” And, without denying it, Luis Cabral replies that previously people were used to spending much more in theaters for far fewer films.
