Dark Times Are Looming For The Streaming Services

Looking back when we only had our television sets and VHS players, times were a tad simpler; maybe it's just the childhood nostalgia speaking, but certainly there is something to it. On the TV, it seemed we had the nigh infinite number of programmes to choose from (unless you were stuck in a post-war, economically transitioning country with the boring local channels and somewhat interesting German channels - long live Super RTL), we paradoxically had nothing to watch. And truth be told, there was nothing... Unless you wanted to watch the endless amounts of ads, inane soap operas and films you weren't really interested in.

Let's Take A Trip Down The Memory Lane

To ease our boredom, Blockbuster existed (and the businesses with the similar/same premise). The weekend is coming; school or work is over, and you know what you want to watch. You go in, looking forward to watching the movie you wanted all week, you rent it, and that's it. Even if you hadn't an idea what to watch, choosing a movie was easier whilst walking through the store - all those covers were extraordinarily captivating (oh, you remember the time when our attention spans were actually at two decimals), and you'd easily find something to take home. Even if you didn't like the movie, you'd watch it anyway; no point in not doing so, considering you pretty much don't have anything else.

Here Come The Newcomers

It's 2000, and Blockbuster is at its pinnacle; they are earning millions by counting on one simple thing: human inability to return on time whatever they rented. I don't suppose this business model was very successful in Germany, but it most certainly was across the world.

You're the king of the hill, and now some wannabe upstarts want to change things. Why would you? You're the king, they all bow to you and there's no need to change.

Alas, for the king, things change. One of those upstarts was Netflix. If you were a marketing student, throughout your education the fact that Blockbuster's downfall was caused due to their myopia was ingrained in your brain; it, along with Nokia's downfall were prime examples. But it was a good thing we were talking about it, otherwise we might forget about this tiny little detail, and then we can go the way of the dodo.

By 2012, Netflix became so successful, it was able to launch its own shows, under the banner "Netflix Originals". To get an idea how it was, watch this short clip:

Is It Perfect? Well...

Netflix, much like the TV with its nigh infinite number of programmes, has one big problem: its users suffer from the Paradox of Choice; they spend up to 18 minutes on average until they finally decide on what to watch - or give up. Other streaming services are currently experiencing a similar predicament with its users.

This is far from perfect, but if your streaming service offers something you really want to watch, then you're sorted - bingewatching is a well-known trend happening, which leads to the users watching an entire show within one sitting.

Everyone Wants A Piece Of The Pie

It just used to be Netflix, HBO and Amazon, right? Maybe, but here's the list of the current players:

• Amazon Video
• Netflix
• HBO Now
• YouTube TV
• Hulu
• Sling TV
• Fubo TV
• Playstation VUE
• CBS All Access
• Philo

This is in the USA; Europe has a tad different situation, but the copyright laws, region-locking and postponed releases for the different markets certainly don't help. Hell, Apple TV is also knocking on the market door, making the competition even more brutal.

The stats below are from 2018, nonetheless, it shows that everyone wants a piece of the pie; unfortunately, there are no pieces left... So, the newcomers will have to grab others' pieces.

The big, [business-wise] diverse players like Amazon or Apple could easily operate under a loss (seeing how their cash cows are in other sectors) in this particular segment, whilst Netflix which is mainly a streaming platform couldn't. Yes, Netflix is a cultural icon; we all know what Netflix and chill mean, but that won't save them from the rumoured prices Apple TV is going to have. Realistically speaking, undercutting the competition is likely to be expected; it's human nature to do whatever you can to be on top. Including stomping over the others.

Game Of Thrones

Whilst the streaming companies are fighting over the throne, GoT is undeniably sitting at the throne of the most popular TV show - 17.4 million people have seen the Season 8 premiere. Not only that, but let's not forget another, some might argue more important figure: the Season 8 premiere was pirated over a staggering 54 million times - all within the 24 hours of its release!

Yo Ho, Yo Ho! A Pirate's Life For Me!

[BY NO MEANS AM I ADVOCATING FOR PIRACY]

Seeing these staggering figures, many would complain about the people illegally downloading and seeding TV shows. I personally know many of them. They think it's simple as paying your hard-earned money for it, and enjoying it as soon as possible.

Maybe it would be, if people didn't want to pay for an entire e.g.: HBO subscription in order to just watch GoT. Many of these streaming services have now their own shows, and the audiences aren't keen on buying an entire subscription just for the one thing they have.

Imagine, you have Netflix, but you want to watch the Man In The High Castle. Tough luck, it's just on Amazon. Silver-lining though: you at least have The Expanse!

Cancelled; moved to Amazon. "****!" cries the user.

And for this, I present you Gabe Newell's famous quote:

"In general, we think there is a fundamental misconception about piracy. Piracy is almost always a service problem and not a pricing problem. For example, if a pirate offers a product anywhere in the world, 24 x 7, purchasable from the convenience of your personal computer, and the legal provider says the product is region-locked, will come to your country 3 months after the U.S. release, and can only be purchased at a brick and mortar store, then the pirate's service is more valuable. Most DRM solutions diminish the value of the product by either directly restricting a customers use or by creating uncertainty."

What Next?

Unless a new service comes along which would provide a simple solution - an easy access encompassing all the streaming companies' respective shows, much like Google is planning to do with its new gaming console - Google Stadia, on which they will allow players to play games from different platforms over a single Cloud service - the streaming market will face more and more unsatisfied customers.