BLUP®: MODERN CULTURE MEETS CREATIVITY + INNOVATION

02/22/2023
2:22PM

A BRAND EXPERIENCE AGENCY
WHERE MODERN CULTURE MEETS
CREATIVITY + INNOVATION

THE STREAMING WARS - By: Elvis Kachi

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Across every industry is a seismic shift currently underway. This shift is propelled by the relentless growth of digital platforms and changing consumer behaviours. At the heart of this transformation is what we and many are now calling “The Streaming Wars”—a term which we’re using to describe and encapsulate the competitive battle between various digital platforms to capture audience attention and loyalty. Statistics  are showing that it costs five times more to acquire new customers than to retain existing ones, and that if brands manage to successfully increase customer retention by just 5%, they can more than double revenue. This is therefore prompting a battle that isn’t just about what brands can deliver the most content, but also about which of them can best adapt to the evolving demands of today’s viewers. We have found that as traditional media giants, tech companies, and other upstart platforms all vie for dominance, three key trends are emerging. Firstly, there’s the rise of live streaming as the new frontier for entertainment. Two, the evolution of binge culture, and three, the growing influence of fan-driven content. Each of these trends highlight the ways in which media consumption is changing, and how companies are responding to, and in some cases, driving these changes.

Live Streaming: Entertainment's New Frontier

Live streaming has become very significant in the entertainment industry, with brands and creators quickly using it to transform how audiences engage with their content. By 2028, reports show that the global live streaming industry which currently accounts for 17% of all internet traffic and 23% of total viewing time, would be valued at $223.98 billion. Streaming platforms, Twitch, for example, have garnered up to 1.28 trillion minute watches, with an average of 5 million active streamers going live each month, and an average of 95,800 live streamers at any time. Like Twitch, others like Younow, YouTube Live, UPSTREAM, IRIS (Bambuser) and Facebook Live, are at the forefront of this movement, offering real-time interaction that traditional television simply cannot match. As more people seek authentic, unfiltered experiences, live streaming is quickly becoming the go-to format for entertainment.

One of the most significant indicators of this trend is the rise of cultural live streamers like Kai Cenat, who has become a household name by streaming his daily life and gaming sessions to millions of viewers. Cenat has garnered over 12.7 million followers on Twitch, 283 million watch hours, 721,715 peak viewers, and 9.15 million peak views. Cenat’s success is underscoring the growing appeal of live streaming as a platform for brand and audience engagement. His streams, often unscripted and interactive, create a sense of community among viewers that is hard to replicate in pre-recorded content.



 

The appeal of live streaming extends beyond individual creators to major brands and events. For instance, Twitch, which is owned by Amazon by the way, has partnered with major sports leagues to stream live games, tapping into the lucrative sports market. Brands and organisations like the NBA, the NFL, and the UFC have their own Twitch channels where they promote and share content. The UFC, for instance, has its own watch-along streams which is hosted by the former mixed martial artist, boxer, and kickboxer, Jens Pulver. Similarly, music festivals and concerts are increasingly being live-streamed, allowing fans who cannot attend in person to participate virtually. This is not only broadening audience reach, but also creating new revenue streams through avenues like virtual tickets and exclusive content.

Looking to the future, the integration of live streaming with emerging technologies like virtual reality (VR) and augmented reality (AR) is poised to revolutionise the industry further. Imagine watching a live concert with a VR headset, feeling as though you are right there in the crowd. Or consider the potential of live interactive storytelling, where virtual viewers can influence the outcome of events in real-time. These innovations will push the boundaries of what live streaming can offer, making it a central pillar of entertainment. As more platforms embrace live streaming, the competition for viewer attention will intensify, forcing brands to innovate continually. The success of live streaming would not just be a trend, but a glimpse into the future of entertainment, where real-time interaction and immersive experiences will become the norm.

Binge Culture and Beyond

Binge-watching has always been a part of culture and a niche habit that’s been facilitated specifically by DVD box sets. It has become a defining characteristic of modern media consumption. The advent of streaming platforms like Netflix, Hulu, and Amazon Prime Video has democratised binge culture, making it easier than ever for viewers to consume entire seasons of shows in one sitting. In fact, the streaming market is predicted to reach $416.84 billion by 2023, with a CAGR of 21.5%. Netflix’s global number of subscribers alone, grew to over 232.2 million in Q1 of 2023. This shift has not only changed how content is consumed but also how it is produced, with many shows now designed to be “binge-worthy” from the outset.

 

 

This is proof that binge culture has become a mainstay, and would influence the future. In today’s world, it has developed into a mainstream activity, fueled by the rise of social media and the need for instant cultural relevance. Platforms like Twitter and Instagram have become integral to the binge-watching experience, with the young and older generations live-tweeting their thoughts about cultural and historic events like sports, sharing creative and cultural memes that brands are using to garner its community, and discussing plot twists in real-time. This social aspect of binge-culture has created a sense of community around certain shows, making the experience more communal even when done in isolation.

However, the nature of binge culture is evolving. As audiences become more fragmented and attention spans shorter, the traditional binge model is being challenged by new formats. Short-form content, popularised by platforms like TikTok, Instagram Reels and YouTube Live, is on the rise, catering to viewers who prefer quick, snackable entertainment over long sessions on traditional TV. Reports show that the traditional TV market’s CAGR is predicted to be -2.11%, with a market size to drop to $137 billion by 2027. By the end of 2024, short-form video content will claim a staggering 90% share of internet traffic, where revenue from short-form video ads will surpass $10 billion, and short-form video ad spending will hit around $100 billion.

 

 

Looking ahead, the future of binge culture will likely be shaped by the integration of artificial intelligence (AI) and machine learning. Streaming platforms are already using these technologies to personalise recommendations, but the next step could be predictive content curation, where platforms suggest content based on a viewer’s algorithm, time of day, or even biometric data. This hyper-personalization could redefine binge culture, making it even more tailored to individual preferences.

Moreover, the rise of “event television” on streaming platforms like the BBC and ITV, where you have to watch a programme live in order to be a part of the conversation instead of watching it at a much later time and date, is also making a comeback. Shows like The Coronation of The King and Queen Camilla, Eurovision and the FA Cup semi-final on BBC and ITV have successfully employed this strategy, creating anticipation and drawing in viewers. This model of viewing may become more common as platforms seek to balance the benefits of both approaches.

 

The Rise of Fan-Driven Content

Fan culture has always played a significant role in shaping cultural media, but the rise of digital platforms has amplified this influence to unprecedented levels. Today, fans are not just passive consumers for personal or commercial brands, but also active participants in the creation and promotion of content. This shift is evident in the growing popularity of fan-driven content, where creators and influencers cater directly to their audiences, often bypassing traditional gatekeepers.

In the past, fan culture was primarily associated with niche communities. However, the rise of platforms like YouTube, Patreon, and TikTok has democratised content creation, allowing fans to become creators in their own right. This has given rise to a new breed of influencers, often referred to as micro and nano influencers, who have smaller but highly engaged audiences. These creators wield significant power, as their authenticity and relatability resonate deeply with their followers, shaping culture in the process. 47.3% of all creators are micro-influencers, the largest group among all tiers. Meanwhile, celebrities, macro, and mega influencers account for only 0.5-6.5% of all content creators.

 

 

Micro and nano influencers have become invaluable to brands looking to tap into specific demographics. According to Linquia, 90% of surveyed marketers and brand owners claim they prefer working with micro-influencers, a 10% increase from the previous year, which boasted an already impressive 80% in 2020. Their smaller audiences allow for more targeted marketing, and their close relationships with followers often result in higher engagement rates compared to larger influencers or traditional advertising channels. This has led to a shift in how content is produced and marketed, with brands increasingly collaborating with these influencers to create content that feels more genuine and less commercial.

The future of fan-driven content will likely see an even greater emphasis on community and interactivity. Platforms like Discord and Reddit are already serving as hubs for fan communities, where creators and fans can interact directly, stream endlessly, share content, and collaborate on projects. This level of engagement is fostering a new kind of fan culture, one that is more participatory and co-creative.

 

 

In conclusion, the Streaming Wars are more than just a battle for subscribers. They are a reflection of broader shifts in how we consume and create content. Live streaming, binge culture, and fan-driven content are all key trends that are shaping the future of entertainment. As platforms and creators continue to innovate, the boundaries between content and audience will continue to blur, and this will lead to new forms of interaction and engagement that will define the next era of entertainment.

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