why are all streaming services increasing?

why are all streaming services increasing?

First, production costs continue to soar. Netflix, Amazon Prime Video or even Disney+ must offer the maximum number of films and series to keep subscribers on their platforms. Prestige series are expensive, with budgets often approaching 100 to 200 million dollars per season. We are not even talking about the 450 million dollars supposedly invested by Amazon for the only first season of the Lord of the Rings: The Rings of Power.

The problem for SVOD services is that they cannot sell these rights to other platforms. In this now highly competitive market, the exclusivity of rights is essential to keep users captive. The recovery of these rights, previously sold to other players, can be expensive. Reportedly, Disney would have had to shell out a whopping $1 billion to take back the rights to Marvel characters like Netflix from Netflix. daredevil Where Jessica Jones.

Other studios, such as Paramount or Warner, do not hesitate to allocate their productions to other services, but these additional revenues will not be enough to prevent an upcoming increase in Paramount+ or HBO Max, their respective SVOD platforms.

Added to this is a slowdown in recruitment in the streaming market. If Netflix and Disney continue to recruit several million subscribers each quarter, the two companies have already warned of a slowdown in subscriptions for 2023. If the “glass ceiling” does not seem to have been reached, global inflation could force many families to limit the number of services to which they subscribe.

The platforms have no other choice today, to continue to grow, than to offer new offers with advertising, even if it means denying their old principles. Netflix was the first to launch, with a formula at 5.99 eurosand Disney will follow in the coming weeks. Apple TV+ could also take the plunge and use the retransmission of Major League Soccer, for which it acquired the rightsto broadcast advertising before and during the matches, and why not afterwards before the films and series offered on the platform.

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