Streaming Industry Predictions for 2023 (Part I)
We'd like to share with you the streaming industry statistics we've collected over the past year and analyst forecasts .It’ll be interesting to check the forecast's accuracy after six months.
We hope that this information will help you in strategic planning in 2023.
Resource StreamingMedia.com conducted a series of surveys of readers from everywhere about the state of streaming.
One interesting trend for development is ad-supported free-to-air television (FAST).
Help Me Stream has been involved in analyzing this phenomenon and believes FAST adoption rates are actually higher for respondents with lower annual incomes. In their opinion, this is also due to the general increase in prices, and the fact that people are returning to work in offices, full-time or part-time, and they already have significantly less time to watch non-stop streaming services.
The transmission quality is also improving. According to the people interviewed, the predominant resolution is now 1080P 24/25/30 fps and there is an increase in usage of 1080P 60 fps.
There are a number of experts who shared their views on the video streaming industry.
We are going to present them here without analysis or evaluation.
Monetization, AVOD, hybrid and FAST
Igor Oreper, chief architect of Bitmovin, believes that the popularity of FAST will gain momentum against the backdrop of rising prices for traditional linear channels.
He also sees a promising story that major entertainment players are willing to offer reduced fees for their services and invest budgets in the development of individual content.
VP Solutions Consulting & CTV Commercial Lead at Lotame, Hunter Terry, declares Netflix to remain the pinnacle, as they have all the tools to satisfy viewers. In addition, he believes that a simple strategy of discounting ads will work. But it won't be easy to introduce new services.
According to Sean Doherty, CEO of Wurl, the fall and slowdown of the economy has its advantages for television. While people start saving, they spend more time at home and may not spend money on vacations, but the need for entertainment will not go anywhere.
In his forecast, he stated that almost 100% of smart TV manufacturers would adopt FAST by 2023.
And the streaming market is adapting to that. As an example, Netflix and Hulu offer cheaper versions with ads, and brands have learned how to reach underprivileged people.
Matt Sotebeer, CSO, Digital Remedy, says there's a lot of potential for sales and revenue growth in ad-supported streaming. A cheaper subscription with in-content ads is an opportunity for marketers.
Sotebeer also suggested that advertisers will look for something new to replace social networks, since their use is not very safe for their brands. Additionally, he mentioned the changes that have affected Twitter over the past year, and recalls that even though it's popular, performance isn't always possible.
According to Julien Signes, SVP & General Manager of Video Network, Sinamedia thinks that in spite of the fact that most streamers attempt to monetize their content via YouTube, the obvious fact is ignored - YouTube is a third-party platform with its own rules of the game, which can block you at will or set its own rules for displaying advertisements and insert them into your broadcast when you and your audience don't need them.
Signes believes a new approach with modular workflows is on the cusp. Owners will be able to control not only the content, but also the display of advertising and save revenue from this work, he believes.
Stefanos Metaxas, CSO of Bliss Point Media also highlights the ad-supported Netflix offering. It is his belief that those brands that remain true to the principles of linear TV and fear streaming advertising will lose out.
Eventually, he predicts, marketers will shift their spending from linear to streaming due to its obvious advantages. In 2023, however, some unpredictable economic factors may be possible.
Metaxas believes that CMOs who have a penchant for analysis, who are able to make adequate assessments and make decisions within their convergent mindset, are more likely to combine these two parts to create a hybrid program.
CTV and OTT
CTV stands for "connected television" and that’s essentially any tv that’s being used to stream video over the Internet. Most often, these are videos that are broadcasted through downloadable applications.
Smart TVs are classified as CTV devices : TVs with built-in Internet connection and media platforms.
David Tice, Senior Consultant from Hub Entertainment Research recalled that digital advertising is leaving Twitter and Meta. But since nothing disappears, these budgets can go to CTV, because they have the ability to be viewer-oriented.
Fewer companies means higher prices. Igor Oreper, Chief Architect at Bitmovin, expects a number of collaborations among companies over the next couple of years. Mergers and acquisitions will, he believes, result in higher end-user package prices and fewer streaming providers.
Gijsbert Pols, Ph.D., Director of Connected TV & New Channels from Adjust predicts a boom in niche streaming services with specific audiences. The benefit to marketers is that they can then run more accurate ads and tailor campaigns that will ultimately pay off.
The boom in niche streaming services will be driven by White Label, AVOD and FAST technologies. Strong side of niche streaming services is in fine tuned targeting. The algorithms of which are based on demographic data, user behavior patterns, etc. It is not only possible for these algorithms to attract attention, but also to encourage action.
Sean Doherty, CEO of Wurl, believes the economic downturn will help drive CTV and compares the process to how mobile took off by 2008.
Gijsbert Pols, Ph.D., Director of Connected TV & New Channels at Adjust also cites the economic downturn as the cord-cutting trend is on the rise and is now being fueled by advertising resources.
He mentions that the industry has all the tools, including the user journey. The measurement of the user journey determines the marketing strategy. Pols says that if you take information from the top of the funnel, you can see the connection between TV ads and broader sales goals.
Matt Sotebeer, CSO of Digital Remedy is confident that CTV will grow very quickly. The social media and search markets are overcrowded, and that is causing diminishing returns, according to Sotebeer.
Hunter Terry, VP Solutions Consulting & CTV Commercial Lead of Lotame thinks that each streaming service will try to create its own unique platform. He also says that everyone who has the data sells it, the only question is what kind of packaging to use.
Jon Giegengack, Principal of Hub Entertainment Research еalks about the content portfolio and genres. He cites Pluto as an example, which sells not only new but also old content, positioning it in such a way that for a generation of young viewers, “new” means “new to me”.
David Tice, Senior Consultant of Hub Entertainment Research, believes that the moment is approaching when Amazon will give away TVs. And what will they get in return? Your data.
Hunter Terry, VP Solutions Consulting & CTV Commercial Lead of Lotame believes CTV will remain, but performance measurement will be difficult due to fragmentation.
If you want more predictions, wait for the second part, from which you will find out what the leaders in the field of streaming think about rights, piracy, security and privacy; will there be anything new in Expansion and Contraction, what are the trends in eSports and the gaming industry, as well as technical expectations from content delivery.
Don't want to wait? You can find useful tips in our blog, follow our social media accounts to learn more :
