2023 was a big year for streaming services, where Netflix ditched password sharing, Disney+ consolidated Hulu, and HBO joined Discovery+ to launch Max. It was a year of shrewd business moves as each streamer chases popularity and profitability in one of entertainment’s most competitive industries. Having looked at last year, we’ve identified some emerging trends that may change the streaming landscape in 2024.
Expect More Bundles
The strongest trend of this year, and probably the next, is the bundling and outright merging of streamers. As mentioned, Disney+ is currently integrating Hulu with plans to finish in 2024. This enables services to become more profitable by widening their content appeal. After all, it’s more profitable to have four big services competing over fourteen small services.
To stay competitive, free trials are likely to stay despite some leading streamers axing them. They’re a constant in many other digital service industries, like retail or iGaming. Just like reduced delivery fees or a casino bonus for new players, typically through free spins or deposit matching, streamers have a lot to gain by offering trials of their services. It gets their name out there, fills out subscription numbers, and contributes to profitability if they convert to paying subscribers.
Besides the free trial, streamers are turning to bundles and mergers to stay afloat. Disney+ has bundled its service with Hulu and ESPN+, a package that is more popular than individual subscriptions to Hulu. On the merger front, we are already seeing a new round of them. After combining HBO Max and Discovery+ to create Max, it has been reported that Warner Bros. Discovery is in talks with Paramount+. This comes after rumors that Paramount+ had also approached Apple TV+ for talks of a merger. Being hailed as a mega-merger, we’re sure to see the outcome of those talks in 2024.
Sports Moves To Streaming
2023 also marked the year that Apple TV+ bagged some of the biggest film releases of the year. Due to production by Apple Studios, it was agreed that Martin Scorsese’s Killers of the Flower Moon and Ridley Scott’s Napoleon would both land in the Apple TV+ catalog after their theater runs. This proved a controversial move, prompting Christoper Nolan to voice his discomfort with streaming-only movies.
As fictional movies reach the final stage of streaming integration, it may be sports’ turn in 2024. In late 2022, NFL Sunday Ticket was snapped up by YouTube TV and since then, Amazon has strengthened its relationship with the NFL, now eyeing up a deal between Prime Video and Diamond Sports. Meanwhile, Disney continues to bundle ESPN+ with its other streaming platforms and has plans to create a direct-to-consumer streaming version of ESPN in 2025. In 2024, expect to see more services vying for their piece of real-life sports streaming.
Disney’s plan to launch a direct-to-consumer version of ESPN remains on track for a debut in 2025.
CEO Bob Iger says the company is also in talks with “a number of different entities” on an ESPN equity partnership — one of the most anticipated deals in all of sports media.
— Front Office Sports (@FOS) November 9, 2023
More Ad-Supported Services
After finally delivering its long-awaited, much-debated password crackdown in 2023, Netflix salvaged subscriber numbers and maintained profitability through its Basic With Ads plan. It offers a cheaper plan than the standard Netflix subscription if you can stomach the minor inconvenience of a 10 to 60-second commercial. Following the market leader, Disney+ and others quickly started offering ad-supported tiers. This may become more commonplace in 2024, as the space gets more competitive between the merged entities left standing.
Alongside those developments, we also have the FAST scene – Free Ad-supported Streaming TV. That’d be the likes of the Roku Channel, Pluto TV, and Freevee, which all had a successful 2023. If streaming platforms push too hard for monetization in 2024, these FAST channels are waiting to snap up disgruntled consumers.
These three trends point to one thing – market saturation in streaming. Some services are flagging, so they join forces to carve out a profitable market share. Meanwhile, they keep costs down with ad-supported plans and jostle for a relatively untapped sports market. The market will only get more saturated in the future, and that’s why we expect these trends to continue in 2024.
Amanda Lancaster is a PR manager who works with 1resumewritingservice. She is also known as a content creator. Amanda has been providing resume writing services since 2014.