Our latest Amagi AIRTIME webinar featured Mike Asebrook, Sr. Director, Product Marketing at Amagi sit down for a fireside chat with Neal Zuckerman, Senior Partner & Chair, Global Institute for the Future of Television at Boston Consulting Group. They dive into the evolution of streaming, uncovering key trends that are reshaping the industry.
Read on for highlights from the discussion, and if you want to watch the full webinar, visit our website.
How would you describe the current state of the streaming industry?
Zuckerman says the streaming industry is constantly evolving, making it difficult for experts to give a definitive answer on what the future holds. One key insight from BCG data, he says, is the growing significance of short-form video. Pre-COVID streaming data showed a surge in subscription services per household, peaking at 3.7. Now, for the first time, BCG's research reveals a jump to 4.1 services per viewer, signaling renewed growth in the streaming landscape.
READ: Is linear TV still relevant in the age of streaming?
Breaking down consumer viewing habits
Based on BCG's data, says Zuckerman, most U.S. consumers subscribe to around four streaming services, leaving limited room for alternatives beyond Netflix, Amazon Prime Video, Disney+, and Hulu.
“We've seen that viewers keep Netflix as their primary service and 'starting place' even if they don't always have something to watch there,” says Zuckerman. “It's a historic behavior.”
Smaller platforms must differentiate themselves based on the content they offer. They often need to provide exclusive content like live sports to retain subscribers.
Affordability is a key factor in determining consumer behavior, says Zuckerman. Due to inflation and financial stress, consumers are increasingly cautious about spending.
When you subscribe to Prime, you’re receiving Prime Video options along with the service that ships packages to your house. So for many people, it’s not an additional price add-on like it would be for a stand-alone streaming service.
READ: Unlocking unified distribution strategies for content owners
How are streaming services competing with one another?
“Streaming wars are happening on multiple fronts – focusing on content, live sports, and some leverage bundling with other platforms,” says Zuckerman.
Innovative strategies extend beyond streaming, such as the previously discussed Amazon Prime model, incentivizing subscriptions through broader perks, says Zuckerman.
Hallmark is another great example, says Zuckerman. The company integrates its content with in-store experiences through its Crown Rewards program, strengthening brand loyalty. These moves change traditional business models, proving that success in media today relies not just around what’s on-screen, but how content connects to broader consumer experiences.
READ: How to maximize monetization and scale streaming revenue
Is personalization a benefit for consumers or too intrusive?
Marketing today isn't just about selling a product, it's about ensuring customers know how to use it and remain engaged, says Zuckerman. Discovery is one of the biggest challenges in streaming, as users struggle to find content with so many choices.
"Personalization plays a crucial role, but it must be accurate,” says Zuckerman. “Mismatched recommendations frustrate users, while well-targeted suggestions enhance engagement."
The success of platforms like Instagram, YouTube, and TikTok stems from their deep understanding of user behavior, Zuckerman says. The platforms blend content with ads, making it difficult to distinguish between the two. This level of personalization keeps users hooked by subtly nudging them toward related content. Streaming platforms, however, haven't yet mastered this integration because their content isn't designed for hyper-personalization in the same way, he says. Unlike social media, streaming relies on traditional long-form entertainment, making discovery and marketing a different challenge. Ultimately, marketers must bridge this gap, helping consumers navigate vast libraries and find value in their subscriptions.
READ: Metadata best practices for FAST programming
Retention and churn: Customer psychology
The core challenge for marketers in streaming and subscription-based businesses is ensuring that consumers perceive enough value to justify their spending, says Zuckerman. Customers who feel they’re getting more than they’re paying for stay subscribed. But when the perceived value of the content is lower than the cost, they churn.
Consumer psychology plays a big role in retention, says Zuckerman. If a viewer watches only a few shows per month and perceives each as low-value, they may feel their subscription isn’t worth the cost and cancel. Similarly, frequent viewers who see high value in the content feel like they’re getting a great deal and remain subscribed. This highlights the importance of discovery and engagement.
Unlike some industries that rely on difficult cancellation processes to retain customers, streaming services must win loyalty through genuine value rather than frustration, adds Zuckerman.
What does the future of streaming look like?
From a consumer's point of view, increasing the cost of streaming services is the biggest challenge, says Zuckerman. Other challenges include the complexity of managing multiple subscriptions, user interfaces, and content discovery. Streaming businesses struggle with high customer churn rates, making retention a constant battle, he adds.
Two of Zuckerman’s key predictions for the future of streaming include:
- Consolidation & bundling: Companies will either merge or form strategic alliances to simplify consumer access and reduce churn. This could take the form of fewer but stronger services or an overarching "mega service" that aggregates multiple platforms, streamlining the user experience.
- Potential unified aggregator – An 'uber player' that provides access to multiple streaming services, much like traditional cable but with greater flexibility, could emerge. It could coexist with direct-to-consumer models, offering convenience while preserving consumer choice.
READ: How personalized EPG will shape the future of FAST
What is the future of Free Ad-supported Streaming TV (FAST)?
FAST includes access to free content, a lean-back experience, archived content, and an ad-driven model that can benefit content owners looking for broader distribution.
As a result, FAST gained traction as SVOD subscriptions plateaued in recent years, says Zuckerman. Once consumers exhausted paid options, they started seeking free alternatives. This search led to a boom in FAST services like Pluto TV and Tubi.
This trend also signaled a shift in advertising dollars, which began migrating from traditional broadcast and cable networks to FAST platforms. As linear TV ad revenue declines, FAST has emerged as an ideal new destination for ad dollars, he says.
FAST offers something for everyone, says Zuckerman.
- Rights holders: Allows them to monetize content archives without disrupting premium services
- Distributors: Enables them to bundle shows strategically, avoiding direct conflicts with cable TV providers
- Advertisers: Provides a fresh, growing audience in a fragmented streaming ecosystem
“I see FAST being a viable path going forward for content to be available to consumers,” adds Zuckerman.
Want to learn more?
- Watch the full webinar here
- Read our latest Global FAST Report here
- View our full webinar series here
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