Game On! 2024 Brings More Changes to Streaming Services
The Trends and Technologies that Will Transform The Media & Entertainment Landscape In The New Year
With 2023 coming to an end, I want to pause and reflect on what’s been happening in our industry and how it sets the stage for the new year. As the CEO of Ateliere, I've had a front-row seat to the seismic shifts in the media and entertainment landscape and particularly the streaming world. 2023 continued to bring transformative change, marked by continued surge in subscription costs, subscriber fatigue reaching a boiling point, and an imperative for adaptability and innovation in business and technology to reduce churn.
These trends are paving the way for an equally vibrant and ever-evolving 2024, where technology will continue to play a key role in overcoming challenges and improving profitability for any media business.
The Hot Trends
Here’s what I think we’re going to see more of in 2024:
- Everyone is bundling! Despite growing, overchoice-fueled subscription fatigue, consumers aren't ready to abandon their top quality entertainment for the much hyped FAST channels, which mostly offer lower quality content. A solid survival strategy for streamers to combat churn is the bundle, as I reflected recently on the Disney / Hulu "One App" launch. So I expect a proliferation of high-value content bundles on major streaming platforms. The Verizon model, which offers Apple+ as a bonus, is a prime example of the direction we expect this trend to take.
- Gaming. I am thrilled about this - we are witnessing an overdue convergence of gaming and content, with Netflix leading the way. With audiences eager to consume high-value intellectual property via different mediums, gaming included, the door is open for innovation. Imagine a future where fans can play their favorite games, watch associated media, episodics, and films, all within the same platform. This will lead to higher viewer engagement and ARPU for streaming operators. It's a win-win situation that not only offers new experiences to subscribers, but also opens up new monetization opportunities for streaming providers.
- New consumption platforms. Breakthrough ways of consuming content, such as Apple's Vision Pro and the advent of Autonomous Vehicles, have sparked significant excitement among audiences. The latter in particular is set to revolutionize the way people consume content on the go. Self-driving vehicles will ultimately give us more idle time, hence more opportunities for on-screen entertainment. Such emerging platforms introduce exciting possibilities for monetization in the ever-evolving media landscape.
All these new approaches to keeping audiences engaged comes with a high demand for infrastructure and technology to support emerging platforms and formats.
Technology Drivers That Can Change Fortunes
Media companies will be even more laser focused on cost optimization in 2024. This was one of the key takeaways from this year's DPP Leaders' Briefing, which Ateliere helped enable. Here’s where technology plays a pivotal role, as it can help automate and consolidate media supply chains, driving costs-reducing efficiencies, maximizing content monetization and opening up new revenue options. An area of high potential is the advancement of compression technologies that reduce streaming costs without compromising quality.
In my view, the following three key technology initiatives will shape business success in 2024: Artificial Intelligence (AI), data management and orchestration.
- Data management will play an instrumental role in supporting these new platforms and business trends. A robust data management system is no longer a luxury; it's a necessity to maximize the monetization potential. Time for all content owners and distributors to get their (data) house in order!
- Of course, no predictions discussion would be complete without the inclusion of AI! Artificial Intelligence, Generative AI especially, continues to be a game-changer in the media supply chain across a wide range of use cases. I anticipate accelerated time-to-market and cost mitigation through AI, as projected advancements create new opportunities for the industry, encompassing areas such as content creation, elimination of repetitive tasks, and the automation of content packaging and delivery.
- Finally, orchestration will be the linchpin, powering an intelligent, self-governing media supply chain - something that truly excites us here at Ateliere. I envision an intelligent, decision-making media supply chain in the cloud that is able to choose the most efficient, least costly path to run specific workflows - eventually deciding what content is ripe for monetization at any given time, based on global trends or cultural needs. The potential for increased efficiency and new revenue opportunities through self-driven orchestration is vast, but only if we embrace modern technology and cloud migration.
Growth Ahead
I firmly believe 2024 is poised to be a pivotal year for streaming and the media and entertainment industry as a whole, through a wave of transformative trends. From the widespread availability of high-quality content bundles, to the exhilarating integration of gaming into streaming and the emergence of new consumption platforms, the landscape is evolving at a relentless pace.
At Ateliere we are fully committed to staying ahead of the curve and provide our clients with technology solutions that optimize their cost, securely manage their data and leverage intelligent orchestration. Part of our ambitious strategy is to leverage strategic acquisitions that will enhance our capabilities and broaden our offerings.
Keep an eye out for Ateliere’s growth in 2024, as we continue to play at the forefront of our ever-evolving industry.
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