The COVID-19 pandemic profoundly changed the way people watched television. In the pre-pandemic era, people went to the movies, bought tickets, and spent big on popcorn and soft drinks. Going to the movies was an ideal weekend activity. Although there were television shows, people had to wait for the next episode to be released every day.
This is when the streaming platforms jumped in. Before this time, Netflix, Hulu, and a lot of other services were available but weren’t used nearly as much. But now, movies have made the transition from the large screen to every screen. With a plethora of content available on the internet, OTT has fully captured the audience.
Consumers and Producers: A Symbiotic Relationship
A new habit has developed among the people. It is convenient to watch new content at any time from the comfort of your own home. There is no longer any need to wait for protracted ad breaks, as was the case before the OTT takeover. The liberty to watch our favorite content without having to wait for the next episodes or seasons, the option to watch anywhere and anytime has permanently changed our perception of content consumption. Today, we have grown accustomed to watching entertainment without interruption.
The streaming providers are well aware of the symbiotic relationships they have established. There is a void in your everyday source of amusement if you do not have a membership. Many of these networks used to offer out free months of subscriptions when it all started. But now that the taste has been formed, demand and supply must be considered.
The providers have been steadily raising the prices of their plans. For example, Netflix announced an instant price increase for new customers across all tiers, bringing the most costly plan to $20 per month. Amazon Prime had a strong $119 plan previously, that is currently revised to $139 per year. People do feel the changes are sudden, and the charges are excessive.
What might the future entail for these brands?
Demand will allow for a price hike to compensate for the low earnings. Users can only hope that the competition created by the abundance of streaming options will keep pricing in check for the future. This concept may become so ubiquitous that brands will be forced to manage prices based on the preferences of their customers.
If no new consumers are born to compete for, the firms may reach a point where they can no longer grow their subscriber base. The loop might then come full circle for it, and it, like today’s TV monopolies, will be unable to benefit from new channels without jeopardizing its hard-won legacy subscribers. There is no doubt, however, that the growth of the OTT will not come to a halt anytime soon. People are continuing to enhance their viewing capacity as fresh content is released regularly.