Hot Trends of the Streaming Market in 2022

Now everything, from gaming to cooking, is broadcasted online through various platforms. Due to the irrepressible pandemic, people tend to do all activities at home instead of attending offline events. Whatever your purpose is, entertainment or education, you can take advantage of streaming services accessible from any device.

Therefore, the market of broadcasters is expected to thrive in the nearest future. But if you want to conquer this industry, you should arm yourself with a tangible advantage. Today we`ll disclose some of the trendiest technologies to help you set up a successful streaming company.

Quick Overview

First and foremost, let`s take a closer look at the statistics on the streaming industry for the past few years.

According to the American Motion Picture Association, in 2020 the global audience of video streaming soared by 26% and exceeded 1,1 billion. Such influx is usually associated with a pandemic and lockdowns, but there are other drivers behind. Despite in English-speaking countries, almost everyone has got vaccinated and authorities have been introducing pandemic, the market capitalization is steadily growing.

According to Grand View Research, total revenue in the segment of mobile video services, including streaming services Youtube and gaming Twitch, increased by 28% in 2020. In other words, digital content consumption is a fundamental trend, not just a pandemic effect.

In 2021, the market value hit $370 billion. And this year it is projected to set a new record reaching the mark of $470 billion. By 2029, the valuation is forecasted to exceed $1,6 trillion displaying a CAGR of 20%.

Another feature of the streaming market is that its main players are not direct competitors. For the most part, the struggle for the audience occurs between classic content providers like cinema and TV and new ones (streaming video), while subscribers don`t stick exclusively to one service. For example, half of Netflix's paid users have a parallel subscription to Disney+ and Hulu, and more than 60% pay for Amazon Prime.

The streaming video market is still highly segmented. Documentaries from Discovery + do not interfere with the growth of demand for studio programs from HBO, game series from Netflix and family blockbusters from Disney.

As each service has its own strengths, the investor does not have to choose either, forming a whole portfolio of securities from streaming companies.

Key Players

To better understand the streaming market, let`s take a glance at its major players.

Although Netflix remains an undisputed leader in the industry, it has been falling short to achieve the desired goals. For the first quarter of 2021, the company reported better than expected on financial metrics. However, the service failed to attract the planned number of users. In January, Netflix received only 4 million paid subscribers instead of 6,3 million. The revision of the target politics caused a strong drawdown in Netflix shares, which were down to $480-510.

Netflix's main competitive advantage is content. The company is leading in terms of investments in the creation of original films and TV series. Despite the interruptions in filming, in 2020 the Netflix studio budget was $17,3 billion. For comparison, Amazon, with a similar user base, spent $7 billion on content in the same year.

Key Trends of the Streaming Market

Now it`s time to move on to the booming technologies that can assist entrepreneurs in setting up a disruptive startup on the streaming market.

Smart analytics

The growing demands of the audience make brands individualize their approach to content making. They consider a number of factors including social, demographic, gender, and age ones. To streamline the process, companies tap advanced analytical tools aimed at studying the interests of the viewer.

Thanks to smart analytics, Netflix not only generates hyper personalized output of recommended titles, but also uses the collected information in a content strategy. Based on this, the script and cast of many series were created and subsequently received a bunch of views and awards.

By studying the preferences of different audiences, you can greatly personalize the content and increase revenue. Thus, people of all ages, nationalities and tastes can see ads for films, music, or streams they might like.

Content adaptation

Audience segments differ from each other not only in genre and preferences, but also in the video content viewing model. These patterns include both thoughtful viewing of a two-hour film, and jumping between short fragments of series. Therefore, streaming services should approach them different to grab as much attention as possible.

Companies strive to take these differences into account, offering viewing modes of "cuts" of 30-second promo fragments like on TikTok, or specially filmed ultrashort content, preferred by a young audience.

For example, the startup Flawless has developed an impressive technology powered by artificial intelligence. It allows users to keep the original facial expressions of the actor and yet watch it speak any language they like. The technology redraws actors` lips so that they correctly articulate the dubbed translation of the film. This may help to improve the promotion of films in foreign markets.

Artificial intelligence

Machine learning is already being used for better video playback. With the help of AI, businesses can determine the most appropriate video format to ensure high quality content display on all devices.

Video processing based on artificial intelligence is also used in games with dynamic resolution and has a dynamic frame rate configuration. This makes it possible to effectively select compression mechanisms depending on the type of content.

Streaming platforms will also increasingly use artificial intelligence mechanisms for content delivery, as well as use data for dynamic content reproduction. This can give players the opportunity to easily adapt to network conditions. Consequently, artificial intelligence helps streaming services become more adaptive and flexible, adjusting to the changing conditions of the global market.

5G Implementation

5G technology is on the verge of maturity. Only 5G networks are able to ensure the continuity of 4K video delivery to mobile devices. Such devices are able to easily reproduce UHD content and significantly improve the user experience. 5G technology will also provide buffer-free streaming of UHD, HDR and 4K content. With the advent and growth of 5G, effective online streaming of 8K video, live broadcasts with a 360-degree viewing angle, VR, AR and personalized broadcasts will also become a reality.

Internet of Things

Companies around the world are increasingly using the Internet of Things (IoT) for various applications. Among them are apps for law enforcement agencies, endoscopic operations, and production of various goods.

However, with the advent of affordable IoT devices on the market, companies began to refocus on supporting consumer apps, including home security systems, pet control systems and IP cameras.

It is expected that the use of streaming for the Internet of Things will grow exponentially in monitoring home systems, security systems and more. The increasing availability of 5G-enabled devices will further accelerate the adoption of video streaming for IoT in both premium and emerging markets.

Conclusion

With the help of the above-mentioned technologies, streaming services are bound to change our watching habits. Content will become even more realistic, immersive, and personalized according to one`s preferences. In this progressive industry, startups have to face exacting customers and yet low competition, since the statistics shows many intersections in viewers`choices. To create immaculate streaming experience, make the use of cutting-edge tools and opportunities.