The media is undergoing a global revolution that is all set to change forever the way we perceive, view and propagate paid media services. With services such as Amazon Prime and Netflix doing better than their television contemporaries, it is no secret that the future of mass media lies within the constraints of the internet. The Internet has always found new ways to make the world a smaller place, but with such subscription based media outlets outplaying set entertainment industry veterans, one cannot help but be surprised and wonder about the future of entertainment.
The case in Britain is no different from everywhere else in the world. TV services such as Sky, BT and Virgin Media are finding it difficult for the first time since inception as number of subscribers keep falling as they keep switching to online services such as Netflix, Hulu and Amazon Prime. These services now boast of over 15 million subscribers in the nation alone, a whopping number if one thinks about how these services initially started out, so unsure of their future and existence. While these services rushed ahead, TV subscribers hit an all-time low, finding it difficult to even cross the 15 million mark.
It is no secret that viewing habits have changed drastically over the years. The advent of the internet forever changed how we watch and view shows and movies. The internet made access so easy that convenience has become the name of the game. The entertainment industry is thereby undergoing a major competitive shift as many big league players are switching to online services to ensure their survival. The quality regarding production and creative control of Netflix and Amazon Prime shows have hit an all-time high, and this provides TV producers and directors with a tough task and also places them under huge pressure to increase the quality of their productions.
The younger generation prefers to watch shows at a go, instead of waiting for episodes on a weekly basis as is popular on TV. This tendency to binge watch has been the unique selling point of online services that release the whole season after they complete post-production work allowing the audience to experience the show in its totality. Netflix and Amazon can afford to spend exorbitant amounts on content generation while TV services do not have this luxury due to their falling revenue margins. Such spending enables Netflix to maintain and produce top quality content as proven by House of Cards and Stranger Things to name a few.
The revenue model used by such companies also go a long way in helping them to be successful. When Netflix initially started out with its subscription model, economists and business gurus were highly doubtful whether this model would ever turn cash positive, but within decades, the little rental service grew to eclipse media giants such as the Virgin Group. The rent model when it comes to revenue generation appeals to the audience, especially the younger generation enabling such services to flourish.
The tech support that such services have and the AI technology they have employed to produce an amazingly accurate and useful recommendation system are also key points that helped them become successful. Analysing previous viewing patterns and popularity indexes spread across various age groups and geographically, helps the Deep Learning algorithm used by such services to successfully predict and recommend new shows to its users thereby creating the perfect advertisement for several shows which would otherwise not have become popular.
Such is the power of the internet that it has changed the way we watch our share of television. From TV screens to laptop and desktop monitors, media and its propagation have changed significantly. Such services have played a crucial role in shaping the present media landscape and look all set to keep expanding and innovating. The growth has been exponential in the last few years, and the future looks even brighter for the digital media company, as it grows its library and expands its services across the globe.
By Athulya Mohandas