Matthew Ball has written the free mini-book The Streaming Book covering the development of online video streaming. Matthew has written about streaming for a long time and has gathered the history of streaming, metrics, cost of production etcetera in an easy-to-read format.
I’ve previously written about the current status of online video streaming market, where five of six major U.S. streaming companies each are making annual losses of $2-4 billions. It is a situation that is likely to change, especially in an environment where consumer and advertising spending is likely to continue to be under pressure and the stock market doesn’t like large losses.
To me a reasonable overall response is to lower investments in new content combined with consolidation to keep value for money high and churn low, lower marketing spend and layoffs.
One interesting data point, of many, is the value of long-term, loyal subscribers (more than 24 months). If you have a great product, the month to month churn goes dow to below 2 %. The problem is that you need a great product and that it takes two years to get there