Commentary: The next phase of the streaming wars
SAN FRANCISCO: What carry out the sport streaming carrier Twitch, music app Spotify and video streamer Max all comprise in customary? This week, they all raised costs for on the least some of their subscribers, joining what has come to feel love a stampede by digital companies of all kinds in 2024 to charge more.
There’ll not be the kind of thing as a mystery in the abet of this spate of impress rises. Streaming might per chance perhaps well also comprise become basically the most widespread industry mannequin for trim parts of the media industry, however for most it has also been chronically unprofitable – seriously in the video world, where it has keep a severe dent in the multichannel TV mannequin that became as soon as prolonged a reliable cash-spinner.
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For now, the pricing actions comprise now not performed grand to depress subscriber numbers, encouraging some companies to push via larger than one round of will increase. But they signal that streaming is coming into a brand original phase, where the headlong run for user progress is over and original forces will resolve which comes out on top.
Spotify, based 18 years previously, has yet to file a worthwhile twelve months, while the manager executive of the 13-twelve months-aged Twitch, now a subsidiary of Amazon, also acknowledged in January that it loses cash.
Warner Bros Discovery, owner of Max, on the least broke into the dim in streaming closing twelve months, making it the morning time media conglomerate to carry out so. But it completely made a negligible profit on larger than US$10 billion of income.
Source: Reuters