This decade has been quite an interesting one for the world of video.
Prior to now, a new paradigm has surfaced where streaming has become an accepted form of entertainment, rather than the usual activity of watching cable.
Even the idea of going to the cinema has become anathema to many the world over.
Even in the popular and latest technology news, internet streaming has become a popular topic with so much attention devoted to the latest movies which can be accessed from just about any device.
This, of course, comes with several distinct advantages which many people have said that is the beginning of a new industry of which they are right in many respects.
The big questions many industry pundits are asking are:
- What are the factors that led to this trend?
- Is this the end of traditional entertainment?
- Is this the end of the era of the movie star?
The answers to these questions shall be answered serially.
Factors that Led to the Rise of Internet Streaming
Many things led to the rise of internet streaming across the board.
These factors have been a long time coming and most of the factors are organic and not much can be done to stem the tide as regards them.
Increased Internet Speeds
With a significant increase in internet speeds which have led to the increase in the amount of bandwidth available for audiovisual media, many webpreneurs who saw this rise from far decided to take the bull by the horns and to take strategic advantage of the situation.
The founders of Netflix which is the first truly successful online streaming service is a case in point.
Tied to higher internet speeds is increased access to cloud services which has enabled the software-as-a-service model (SAAS) to become extremely useful for streaming services.
Cloud architecture allows for the deployment of heavy-duty applications at relatively cheaper costs than previously.
The Increased Popularity of Smart Devices
Since the explosion of smart device operating systems such as Google’s Android and Apples’ IOS, almost anything is possible using mobile phones these days.
Smart devices last longer, are lightweight and can be used for just about anything as the personalization of applications has become the trend rather than the generalization.
Streaming services are a perfect example of how these trends function.
Smart devices have helped to provide a basis for these streaming services which has created the mobile paradigm over the desktop.
Mobile devices are cool, trendy and can be used by just about anyone for anything.
Why won’t they be used for movies?
This is the question that the founders of streaming services asked themselves and were able to answer!
Higher costs of Movie Production
Since the advent of the twenty-first century, most of the movies being produced have always had big budgets.
These big-budget movies often led to big-ticket releases which also produced even bigger profits.
The Marvel Cinematic Universe (MCU) movies are a case in point.
However, the time cost of going to the Cinema and watching these movies is just way too much for many.
Some people just want to sit down and enjoy a movie night at home without having to be accused of pirating content.
Enter streaming services.
With just about any form of content which can be streamed at little cost, these services fill a niche that cable TV used to formerly fill.
Even the big studios are getting the hint and are coming up with their own partnerships as well.
A perfect example is the average cost of production for Netflix to acquire original movies which is about $40 – $50 million.
If such a budget is compared to the Marvel Cinematic Universe (MCU) movie franchises which has the least performing Hulk which had a budget of $150 Million and total debut revenues of $134.8 Million at the US box office to Black Panther which has a budget of $200 million and is still generating $1.325 Billion plus.
There is no space for the little gal (Ladies first) or guy to compete and still make a name for himself or herself at the Box office.
Internet Streaming services, on the other hand, need authentic content and lower budgets allow the upcoming ones to get a chance at doing something great!
The Rise of Media Piracy
Big budget movies offer pirates the chance to steal profits and skim a little something for themselves.
This hurts everyone’s bottom line as big profits is equivalent to the big-budget for the big guys in Hollywood.
With internet streaming services so far, smaller budgets also can produce a POW effect.
This allows for the streaming services to be able to curtail piracy downwards.
The fact that most streaming services belong to or are owned by technology giants also allows for the implementation of digital rights management in one form or the other which in itself lessens the incidence of piracy.
Is this the end of Traditional Entertainment?
While many pro-tech pundits are already humming the tune of “death to traditional entertainment”, the truth is that the entertainment industry has a unique opportunity to reinvent itself with the rise of internet streaming services.
While at some point in the future big-budget movies are going to become less wanted by movie buffs, Hollywood is still the mainstay of entertainment in both America and the World.
However, the future does indicate that streaming has a hold on the industry and many won’t like it.
Big tech has now entered entertainment and we know how big tech behaves.
When they enter an industry the next thing you know BOOM! They dominate!
Is this the end of the era of the Movie Star?
Again, the doomsday naysayers would want to predict the end of the gilded age where movie stars rule the entertainment industry.
However, movie stars being the new royalty of the twenty-first century will be doing a lot more in the coming years.
Movie stars will now have to be able to understand how to work with emerging technologies and will also have to be able to allow for competition now that budgets are getting lower due to the rise in technology.
This is not a bad thing per se, but it is crucial for the survival of the Hollywood model where everyone had a hierarchy prior to now.
The new movie stars that will reign in this new era will be the ones who adapt the most to technology.
What do you think?
Will streaming services take over traditional entertainment?
Let us know in the comments below!