The StreamTV Show in June 2024 brought together professionals from television, broadcasting, production, and technology for three days of industry panels and discussions in Denver, USA. This event provided a platform for industry leaders to explore current trends and future directions in the streaming landscape. Here are five key trends team allrites gathered:
1. Content Discovery and the Importance of Metadata
Having little data is bad, but having too much can be equally problematic, especially if one doesn't understand how to use it. Nowadays, there is an overwhelming abundance of data available for analysing channel performance and subscriber behaviour. However, it’s crucial to recognize that not all data is relevant to every channel and streamer. Established players have different data needs compared to smaller, emerging ones. It’s essential to critically assess what kind of viewers your platform or channel attracts and how to keep them engaged. This is where content discovery becomes a challenge, and improving recommendation engines and sampling methods are key.
Metadata plays a crucial role in content discovery. As the video entertainment industry becomes more complex, so does the metadata. Rich and accurate metadata—including details such as year, cast, genre, tags, themes, and production locations—enhances viewers’ ability to find content they like, boosting satisfaction and retention. This is particularly important as Connected TV (CTV) usage rises, with Smart TVs owned by 56% of respondents. However, 40% of people report confusion about finding desired titles, spending an average of 10 minutes browsing.
Moreover, the evolution of AI and machine learning has significantly impacted how metadata is used. Advanced algorithms can now analyse vast amounts of metadata to provide highly personalized content recommendations, which is crucial for retaining viewers in an increasingly competitive market. As streaming platforms continue to integrate AI, the accuracy and relevance of content recommendations are expected to improve, making it easier for viewers to discover new shows and movies that match their interests.
2. FAST Channels Eager to Secure Sports Rights
Sports content is expanding within the FAST channel ecosystem, benefiting all parties involved.
For sports rights holders, FAST channels offer an excellent opportunity to repurpose non-exclusive older content and generate revenue from advertisers.
Advertisers benefit from the integration of interactive features such as live statistics, multiple camera angles, and real-time polls during live sports broadcasts on FAST channels. These features enhance viewer engagement and provide advertisers with valuable data that can be used to tailor content and advertisements to specific audience segments.
For FAST channels, acquiring sports rights is an opportunity to attract new, engaged audiences. An Altman Solon 2023 study found that about 60% of sports viewers are avid fans, while the remaining 40% are casual fans—an untapped group that presents a significant opportunity for right holders and streamers to convert into more engaged, avid fans. Sports brands and streaming platforms leverage FAST channels to attract casual fans with sports documentaries, game highlights, and replays. Once these viewers are hooked, they may become paying subscribers for exclusive sports content.
As discussed in one of the StreamTV Show panels, 81% of avid sports fans would sign up for a streaming service with exclusive rights to their favourite sports if it were no longer available on live TV. Moreover, major events like the World Cup, UEFA Champions League, and top domestic leagues can drive user acquisition and switching behaviour for channels and streaming platforms. Meanwhile, longer-tail sports tend to influence user retention, ensuring a steady and loyal viewership base.
Overall, the integration of sports content within FAST channels not only diversifies the streaming landscape but creates a dynamic synergy between viewers, advertisers, rights holders, and entertainment platforms.
3. YouTube’s User-Generated Content in Premium Streaming
As YouTube controls 10% of viewing time in the US, a notable trend discussed at the StreamTV Show was the crossover of content creators from YouTube and social media into the world of TV and film streaming. The rise of user-generated content on platforms like YouTube has blurred the lines between amateur and professional content. Successful content creators often boast high production values, engaging narratives, and dedicated fan bases, theoretically making them attractive to streaming platforms looking to diversify their content offerings.
The challenge lies in presenting these creators within a streaming channel context and determining whether production quality matters. This distinction is critical as advertisers, TV professionals, and viewers debate what qualifies as “premium content.” YouTube executives themselves have a high regard for the platform’s content. For example, YouTube CEO Neal Mohan referred to YouTube creators as the “New Hollywood.” Similarly, Link Neal, co-host of the YouTube morning talk show and variety series "Good Mythical Morning," emphasized, “We are not making user-generated content. “We are making independent television,” suggesting that he does not consider their work to fall under traditional user-generated content or premium content categories.
Last week, we at allrites touched on the topic of "premium content" definitions by advertisers, TV professionals, and viewers, discussing whether YouTube content creators can qualify as VOD and FAST content producers. You can read more about this discussion here.
4. The Rising Preferences for Ad-Supported Entertainment
The dominance of the “Big Five” streaming services (Hulu, Netflix, Amazon Prime, Disney+, Max) continues to rise, with 52% of viewers in 2024 subscribing to three or more streaming services, up from 40% in 2021. However, the rise of AVOD (Ad-Supported Video on Demand) and FAST (Free Ad-Supported Streaming TV) options, along with a trend of people using both subscription and ad-supported services simultaneously (48%), has led to a decline in the average spend on OTT (Over-The-Top) services to $63 in 2024 from $90 in 2021.
The shift towards advertiser-funded content is evident, with 61% of SVOD (Subscription Video on Demand) users who have the option of ad-supported tiers opting for the latter. While 52% of these users are willing to pay attention to relevant ads, 62% dislike seeing too many ads within one hour, and 60% do not like seeing the same ad repeatedly.
Relevant and non-intrusive ads have proven effective. Pause ads, which appear when a viewer pauses a streaming video, have led to a 34% increase in unaided recall and a 6% increase in brand recognition. More than half of the participants reported an intent to purchase the product after viewing these ads.
The rising preference for ad-supported models and the willingness of the audience to watch ads in exchange for free content highlight the importance of delivering relevant and non-intrusive ads. Advertisers and streaming platforms must work together to ensure that ads enhance rather than disrupt the viewing experience. This is where viewership data comes into play, along with innovations like interactive ads, personalized ad targeting, and reduced ad loads, which can help maintain viewer engagement and satisfaction.
5. The Importance of Deep Libraries
Insights from the StreamTV panel revealed that the top 1,000 titles, which constitute only 6% of the total content available, are responsible for over half of the viewing hours and views. This segment likely includes a mix of highly popular original shows and blockbuster licensed content, showcasing their critical role in attracting and retaining subscribers. Conversely, the remaining 94% of titles collectively contribute almost half of the total viewing hours, emphasizing the importance of maintaining a deep and diverse library to cater to varied tastes and interests.
A balanced content strategy that values both original and licensed content across different popularity tiers is crucial for sustained success in the competitive streaming landscape. Cutting down on content variety or focusing solely on high-profile titles without supporting a broad library could undermine viewer engagement and retention in the long term. Moreover, having a deep library allows streaming services to cater to niche audiences and long-tail content preferences. This diversity not only attracts a wider range of subscribers but also helps retain them by offering a continuous stream of new and interesting content.
Earlier, we at allrites discussed what metrics each type of content boosts—originals and exclusive content for attracting subscribers and licensed content for audience retention and engagement. A streamer typically finds that the right mix of both makes the content library just right.
About The StreamTV Show
The StreamTV Show is an annual event that brings together professionals from television, broadcasting, production, and technology to explore the future of streaming. Held in Denver, Colorado, it offers a dynamic platform for industry leaders to network, share insights, and discuss the latest trends. The event attracts over 1,100 attendees, featuring more than 100 speakers from major companies like ABC News, Netflix, Peacock TV, and Warner Bros. Discovery, providing diverse perspectives through keynotes, panels, and demonstrations.
About allrites
allrites is a premier marketplace for buying and selling film and TV rights. We provide a vast catalogue of Film and TV content, from major studios to independent producers, available in any language and genre. Our innovative licensing models, including allrites Content-as-a-Service, offer flexible and efficient solutions for content monetization and acquisition, accommodating the evolving needs of content buyers and sellers worldwide.
Contact us to learn more about us and our revolutionary CaaS model.
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