Good news for viewers as well as professional filmmakers - in the wake of the ongoing competition among the major streaming services, they are massively betting on new content to get new subscribers and keep old ones from leaving for the competition. According to estimates from Financial Times, the 8 major streaming services, including Netflix, Disney, Apple, Amazon, and Warner, among others, will together spend the enormous buzz of over billion on producing new series and movies in 2022. In the process, the competitors are increasing their spending massively once again, with Netflix increasing its investment by 25% to billion in 2022 and Disney by 35-40% to billion.
Thus, while the Corona Crisis led to a boom in streaming services in 2020 and 2021, it is expected that this boom will come to an end this year and thus the competition - the so-called "streaming wars" - will intensify. It is clear to the companies that the investments will be a loss-making business in the short term, i.e. that more money will be spent on new productions than will be recovered through subscriptions, but in the course of competition among themselves, it is clear to everyone that the market will not be large enough for all streaming services.
If you can&t keep your viewers and you can&t attract new viewers, you&ll end up in a downward spiral of less and less revenue, less and less money for content, and fewer and fewer viewers - in the end, all the investments you&ve made will have been for nothing, because only the surviving services, which will then divide up the huge streaming market among themselves, will be able to operate profitably in the medium to long term.
For viewers, the current situation has both good and bad consequences: on the one hand, more and also a lot of outstanding content is being produced; on the other hand, the offer is becoming more and more fragmented, i.e. new good movies and series are spread across many different services, all of which can only be accessed by subscription. But who wants to spend vast sums every month on multiple subscriptions, each of which costs at least 8 euros, to be able to watch this content?
According to a study from 2019, most U.S. households want to spend a maximum of on streaming subscriptions which equates to a maximum of three subscriptions. The rather inconvenient solution is to sign up for subscriptions only on a monthly basis, and during that period, binge-watch all the interesting content produced by the respective service in the meantime.
For content producers, however, this is undivided good news, as the massive investments made here in Germany thanks to the EU TV production quota mean a windfall for all the trades involved in production - from scriptwriters and actors to cameramen and camerawomen, lighting technicians, prop masters, location scouts, catering providers, make-up artists, etc. - and makes the German film and TV industry a bit more independent of the local TV broadcasters.
And it is to be hoped that, in the course of economic competition, more and more interesting creative ventures will also be taken in order to land one of the great international accidental giant successes that will become a worldwide "must see" and bring the corresponding streaming service many new subscribers as well as good PR (such as the Korean series hit "Squid Game"). In other words, content that is interesting and exciting for both viewers and producers.