As 2024 kicks into gear, we at Horowitz are concentrating on the shifts in leisure, media, and know-how that may most definitely impression client attitudes and behaviors within the subsequent 12 months.
TV Is again(ish)
Regardless of the various TV networks and streaming providers, in 2023 there was little or no new and attention-grabbing content material out there to observe. The Writers Guild of America (WGA) and the Display screen Actors Guild – American Federation of Tv and Radio Artists (SAG-AFTRA) strikes had successfully shut down tv and movie manufacturing for the higher a part of the yr and contributed to the dearth of content material out there to observe proper now. With the strikes over, and with understandings hammered out (for now) on many important points, together with about how AI can and can’t be used in content material creation, we are able to all stay up for new, thrilling, high-quality content material. A few of it can premiere in 2024, whereas different productions received’t make it to the display screen till 2025. I’m personally excited for Amazon Prime Video’s Mr. and Mrs. Smith (for therefore many causes!) and HBO’s True Detective: Night time Nation, although there are a lot of different new productions and new seasons of exhibits to interact us in 2024!
Higher content material discovery experiences
All this new content material might be nice, however how will we discover it? For just a few years now, we at Horowitz have been reporting client fatigue and frustration within the streaming area with looking for one thing to observe in a fragmented ecosystem. Extra not too long ago, there have been main enhancements in content material discovery. In July 2023, we reported on how shoppers had been leaning on curated collections and hubs inside streaming platforms to assist discover resonant content material, and most working techniques now supply common search throughout platforms. However, nonetheless, the streaming ecosystem can’t replicate the ritual of flipping by channels to browse and discover one thing to observe or actually have that “must-see TV” water cooler expertise.
Enter Plex’s Uncover platform, providing “the power to create one common Watchlist, browse curated suggestions, and watch trailers for brand spanking new releases” from throughout all sources. This platform allows you to see what’s trending total, save a watchlist, and even share your watchlist and evaluations with buddies. I anticipate we might be seeing far more of this type of performance transferring ahead within the streaming area as audiences yearn for extra curated suggestions (by actual folks, not algorithms) that may result in these enjoyable water cooler moments.
Free TV! Many of the new exhibits popping out might be out there behind paywalls, however there may also be loads to observe without cost. The trade not too long ago found that there’s a market without cost, ad-supported tv (FAST), and sure, I say that tongue-in-cheek. When FAST channels first emerged, there was little in the best way of technique or skilled curation or programming. In 2024, we’ll see the explosion of FAST as a extra strategic piece of the media ecosystem, a method for media manufacturers/networks to interact viewers after which drive them to subscribe to premium streaming tiers for all the nice, new, just-released content material. We’ll proceed to see a refocus on windowing, even in streaming providers, with new episodes of many exhibits launched on a per-episode foundation to drive viewership, maximize income, and reaffirm the worth of premium subscriptions.
Return to the bundle
We additionally predict we might be seeing extra consolidation within the streaming area—a return to the multichannel expertise, if you’ll—of networks/content material sources below one umbrella with one log-in, one consumer expertise, and one invoice simply managed in a single place. Shoppers can already get streaming bundles, comparable to by Verizon’s myPlan perk. A real streaming multichannel expertise received’t occur in a single day although. There’s an excessive amount of invested within the multitude of particular person platforms, every of whom has put a great deal of cash into know-how growth, licensing offers, and authentic content material. But when the conversations between Discovery Warner Bros. and Paramount give us any indication, we anticipate we might be seeing extra streaming providers mergers and acquisitions occurring in 2024.
Blurring the road between leisure, promoting, and commerce
The largest problem within the streaming area is producing income—the cash to pay for all the nice content material and client experiences all of us yearn for. Advert gross sales are a key element of this, particularly now that the majority providers, together with Netflix, have ad-supported tiers. Within the digital ecosystem, customized advert experiences knowledgeable by large knowledge are fully potential, and e-commerce gross sales are only a distant click on or QR code away. Nonetheless, a serious barrier to interactive promoting is the priority that these experiences might distract from the patron’s viewing expertise of the present itself. We imagine that the trade wants to take a look at social media platforms like TikTok to think about what new engagement and income alternatives would possibly current themselves as soon as there’s much less of a divide between leisure, promoting, and commerce.
The aggressive marketplace for house web
On a associated observe, one other growth we’re conserving shut tabs on is what is occurring with the marketplace for house web providers. In December 2023, we reported on how bullish shoppers are for wi-fi 5G house web, which might probably pose a serious risk to broadband suppliers as cell suppliers increase their house web choices to extra markets throughout the US. 5G service prices about half the value of broadband, and shoppers who’ve adopted 5G wi-fi house web thus far are extremely glad with it. Does fixed-line wi-fi 5G actually maintain a candle to web service hard-wired to the house?
It stays to be seen if these excessive ranges of satisfaction maintain up as subscribers transition out of the honeymoon part. That stated, we do anticipate that the aggressive roll-out of 5G wi-fi house web will pressure a brand new period of competitors within the area that may see web costs drop and suppliers providing extra in the best way of perks, just like the aforementioned bundles of streaming providers.
We’re excited to start out the brand new yr by going into the sphere with State of Media, Leisure, and Tech: Subscriptions, one in all our annual research monitoring the evolving marketplace for leisure and communications content material, providers and applied sciences for over 30 years. Keep tuned for extra from Horowitz’s client insights in 2024!
