Streaming Industry Execs See Future Echoing TV’s Past

The streaming industry is at a pivotal juncture. User growth has plateaued, consolidation among major players is on the horizon, and the long-sought goal of profitability seems achievable—especially for frontrunners like Netflix. Against this backdrop, The New York Times interviewed key industry figures, including Netflix co-CEO Ted Sarandos, Amazon’s Prime Video head Mike Hopkins, and IAC chairman Barry Diller, to glean insights into the future of streaming.

A common consensus emerged among these executives: the future of streaming will likely involve more advertisements, higher subscription prices, and fewer investments in high-budget prestige TV shows.

This shift reflects a broader industry transition from growth-at-all-costs to a focus on profitability. Initial low pricing strategies, deemed unsustainable, are giving way to steady price increases. Simultaneously, streaming services are offering more affordable, ad-supported tiers to cater to cost-sensitive viewers.

Executives predict that ad-supported subscriptions will become increasingly prevalent. Some suggested that ad-free tiers will see price hikes to nudge more customers towards the ad-supported options. This evolution could influence content production, as advertisers typically prefer programming that appeals to a broad audience.

The trend mirrors the golden age of network TV, dominated by popular genres like medical and police dramas, contrasting with the more niche and ambitious offerings of subscription services like HBO.

Despite these changes, industry leaders insist they are not completely abandoning high-quality, groundbreaking shows. Sarandos, once intent on turning Netflix into a new HBO, now emphasizes a balanced approach: “We can do prestige TV at scale, but we don’t only do prestige.”

Similarly, Hopkins highlights Prime Video’s strategy of balancing reliable formats with bold, innovative content that generates buzz and word-of-mouth.

Other industry shifts include a greater emphasis on live sports, which Warner Bros. Discovery board member John Malone describes as “the simplest and most interesting thing,” along with increased bundling of services and potential mergers or shutdowns of smaller platforms.

Former Disney CEO Bob Chapek noted that streaming services need a subscriber base of at least 200 million to remain competitive.

These trends suggest that the future of streaming will, in many ways, resemble the traditional cable TV model. On-demand viewing will undoubtedly improve the user experience, but issues such as fair compensation for writers, actors, and other talent may persist or worsen.

While the major players may change, the structure of the industry will likely retain many familiar aspects of its cable TV predecessor.

In conclusion, the streaming landscape is evolving, driven by a pursuit of profitability and a strategic shift towards ad-supported models.

This evolution reflects a blend of old and new, offering both improvements and challenges reminiscent of traditional television. As the industry adapts, viewers can expect a mix of on-demand convenience and familiar content formats, shaped by the economic imperatives of the streaming giants.