Streaming services like Spotify and Netflix have recently increased their subscription prices, indicating their belief in their indispensable role in consumers’ lives. However, these price hikes come at a time when many people are trying to cut their spending, leading to a game of “subscription Russian roulette” as consumers decide what services to keep and what to let go. If consumers discover that these platforms aren’t essential, it becomes difficult to win them back.
In addition to higher prices, there has been a noticeable shift in the content being offered streaming platforms. Algorithms curate content based on users’ tastes and interests, resulting in a lack of variety and a sense of “beige-ification.” On the other hand, disruptors like TikTok offer a seemingly limitless variety of content without the need for expensive production costs. TikTok’s algorithm ensures that users are constantly exposed to new and diverse content.
Streaming giants need to find a way to keep their audiences engaged and happy, without relying on price increases and decreasing variety. They need to go beyond being convenient utilities and offer something unexpected and electrifying. In the world of music, artists who succeed are often those who incorporate elements of existing popular music while still offering something fresh.
For example, Olivia Rodrigo’s hit song “Vampire” has been compared to songs Lorde, Taylor Swift, and Miley Cyrus, with fans actively seeking out the similarities. This desire for familiarity and similarity is not a criticism but reflects how our brains are wired to consume content. Streaming services must find a way to offer true variety and allow for unexpected choices to prevent themselves from becoming “beige” and ultimately losing their audiences.
In conclusion, streaming services need to continuously innovate and provide diverse and exciting content to keep their audiences interested. They must move beyond being convenient utilities and offer unexpected experiences to ensure their survival and growth in the market.
– James Kirkham, CEO and founder of marketing/entertainment agency Iconic (no URL provided)