by Thinus Ferreira
New market research from America that has bearing on the same situation in South Africa, shows that TV viewers are getting lost in the video streaming wars, with consumers feeling that they're lost in "a vast sea of options" and struggling with what makes one streamer different from the next.
Hub Entertainment Research has released a new study showing that the proliferation of video streaming services - each funnelling their own collections of acquired and new content - are creating congestion, making the content discovery process and deciding what to watch, even more difficult.
According to Hub Entertainment Research, consumers struggle to figure out what really makes Netflix different from Disney+, or Amazon Prime Video different from Apple TV+.
According to the market research done in America in January 2023, 98% of respondents have heard of Netflix but only 79% could say what made it different and unique from other similar services.
For Amazon Prime Video, 97% knew about it but only 69% could differentiate it from competing service. For Disney+ it was 96% and 67%, and for Apple TV+ 93% and 46%.
Other streamers not yet available in South Africa like HBO Max now renamed Max, and Paramount+ there was a similar higher percentage of knowing about it, a much lower percentage when it came to know how it's different.
Add into the picture that South African consumers have access to additional video streamers like MultiChoice's Showmax, eMedia's eVOD, the South African public broadcaster's SABC+ and smaller players like PCCW's VIU, BritBox, Marquee TV, PrideTV, CineMagic and some others, it's clear how consumers are overwhelmed by what's available and differentiating.
Interestingly, according to the study, 41% of respondents signed up for a video streaming service over the past year just to watch one show - an increase from 35% from the previous year. In households with kids, it was much higher at 54% - an indication that kids are influential and helping to drive the uptake of streaming services.
Regarding cancelling a video streaming subscription, respondents cited that they've "ran out of things to watch" as the most common reason.
In January 2023, 29% said they had watched the Paramount series Yellowstone on a streaming service and which is now on M-Net (DStv 101) in South Africa.
A massive 70% said they've moved on to watch one of the Yellowstone spinoff series. This means consumers are jumping around between video streamers since Yellowstone is on Peacock in the United States, but the spinoffs are on Paramount+.
"Content has always been king but as the streaming ecosystem gets more crowded, the role of IP branding on which platforms viewers sign up for and keep is more direct than ever," says Jon Giegengack, principal and Hub founder.
"And at a time when mitigating churn has become job one for providers, valuable IP will be more valuable than ever."
