Streaming Services Shift strategies in Evolving “Streaming Wars”
LOS ANGELES – The competitive landscape of streaming entertainment is undergoing a critically important shift, as platforms move away from attempting too be all-encompassing services and rather focus on distinct content niches. This strategic realignment comes as Netflix prepares to release it’s quarterly earnings report tomorrow, having recently expanded beyond traditional film and television into live sports, video games, and podcasts.
Netflix’s efforts to extend its brand include a mobile game based on the popular dating show “Too Hot to Handle,” exclusively for members age 17 and older, prompting competitors to reassess their own approaches.
“All of this is about brand extension,” explained Jawad Hussein with S&P global Ratings. “You take a piece of content and you expand it out, and then you can monetize it in so manny different ways and you can extend the franchise life.”
This strategy mirrors Disney‘s successful model of leveraging characters and franchises across multiple platforms, including theme parks.Netflix is also entering the physical space with “Netflix Houses” offering screenings and character photo opportunities.
Alicia Reese of Wedbush Securities noted the core goal of thes expansions is to increase viewer engagement. “And to do that, they have to have a pretty broad array of content, and with such a massive global footprint, those tastes vary pretty widely,” she said.
While Netflix pursues broad appeal, other platforms are narrowing their focus. HBO Max,for example,sold the streaming rights to new episodes of “Sesame Street” in 2023,acknowledging that the program didn’t align with its core audience. ”They came right out and said, publicly, our members just aren’t watching it. Cause who thinks of HBO Max as a child’s platform?” said analyst Dan Rayburn.Netflix subsequently acquired the rights to “Sesame Street.”
Disney, meanwhile, has concentrated on superhero content and live sports through its ownership of ESPN. Hussein observed that early in the “streaming wars,” competitors initially sought to replicate Netflix’s broad strategy.
“The problem was Netflix had just gotten a bit too much of a head start,” Hussein said.
Now,the streaming landscape is settling into a more defined structure,with competitors choosing specific content lanes and preparing for a “long haul” of specialized service offerings.
