Video Streaming Everywhere
Streaming video services are now the primary source of entertainment for many households, surpassing cable and broadcast TV in popularity. According to GWI, 45.6% of U.S. internet users aged 16 to 64 pay for a TV or movie streaming service each month in January 2024, as well as 48.5% in Brazil, 42.6% in Spain, and 40.9% in the U.K., while the worldwide average is 30.1%.
Streaming has firmly established itself as the future of television around the globe, reflecting years of sustained growth and shifting viewer preferences, so let’s explore some of these emerging trends and how they are shaping the future of the video streaming industry.
Gamification of Everything
As a new generation influenced by social media and gaming emerges, VOD providers must innovate to captivate and monetize a fragmented audience. Incorporating gamified elements into programming encourages longer viewing times and can drive purchases by leveraging principles of immediate, unpredictable, and conditioned rewards.
As younger audiences lead the way in adopting new trends, including the rise of short-form content on platforms like TikTok, streaming services may enhance engagement by turning passive watching into an interactive experience, making the platform more dynamic and appealing.
Advertisers aim to meet consumers where they are, and integrating gamified elements can make streaming services a must-visit destination for exciting content, effectively blending social and mobile extensions into the viewing experience.
AI Algorithms and Highly Personalized Experiences
Hyperpersonalization is revolutionizing OTT platforms by centering on the viewer with tailored experiences like never before. This transformative approach leverages advanced user data, behavior analysis, and AI algorithms to deeply understand audiences. This enables platforms to create highly personalized content recommendations and customize the overall user experience, from interface design to content delivery, making each viewer’s experience unique and engaging.
Key elements of hyperpersonalization include sophisticated algorithms that analyze viewing history for personalized content suggestions, adaptable interfaces for user comfort, and dynamic content that changes based on viewer decisions. Additionally, personalized advertising uses behavioral data to serve more relevant ads, enhancing effectiveness and minimizing interruptions, ensuring a harmonious and enjoyable viewing experience.
How Long Until Virtual Reality Becomes Massive?
It’s only a matter of time before virtual reality (VR) becomes widely accessible. While it may take a decade or more, it seems inevitable. Companies like Apple and Meta have recently released more sophisticated VR devices, but they are still far from being comfortable and accessible enough for mass adoption.
VR has the potential to be the next tech revolution after smartphones, offering everything a smartphone does but with added interactive elements. The video streaming industry could greatly benefit from this, immersing users in interactive, entertainment-rich environments that blend visual experiences with e-commerce, games, and more. This shift will transform how we see and interact with content.
While mass adoption of these technologies is still a few years away, the key will be the development of more portable devices. Companies should be prepared to capitalize on this revolution’s early stages. It may sound like science fiction, but it’s likely only a matter of decades before we see more sophisticated VR technologies that connect directly with our brains.
“As we look to the future, the only certainty is change, and those who navigate it effectively will emerge as the pioneers of the streaming era.”
Engage, Consume, Repeat: The New Happy?
Businesses are exploring new strategies to engage consumers online, particularly through e-commerce, by blending video streaming with online shopping to recreate the in-person experience and keep customers interactively engaged with their brands. Facilitating transactions and increasing personalized ads are at the core of the desired scenario for video streaming companies, which aim to attract user attention by providing exactly what they want. Identifying user desires is thus crucial to driving consumption.
TikTok Shop, launched in the US in September 2023, exemplifies this shift, allowing brands and creators to engage directly with viewers via videos or livestreams and facilitate in-app transactions. This platform is particularly successful among Gen Z users, with a forecast indicating around 40% of internet users in China will make at least one livestream purchase in 2024, as stated by EMARKETER. Influencers, whether we like it or not, are highly influential among younger generations.
The above-mentioned emerging trends of gamification, hyperpersonalization, and virtual reality all aim to attract users and boost in-platform consumption. Market players must remain agile and proactive in embracing these trends to thrive in the dynamic ecosystem. As we look to the future, the only certainty is change, and those who navigate it effectively will emerge as the pioneers of the streaming era.
NPAW provides Telco operators, OTT services and Broadcasters with comprehensive video analytics and business intelligence solutions. We help streaming video companies optimize and monetize video delivery and playback. As a trusted provider of video QoE and QoS solutions, NPAW produces reliable data insights. We enable clients to maximize engagement and enhance viewer experiences.