Streaming platforms have fundamentally transformed the entertainment landscape, providing consumers with a new level of convenience and flexibility. Major players like Netflix, Disney+, Hulu, and newer players like Max and Peacock compete fiercely for your viewership, and your subscription fee. While we as consumers love to have options, juggling multiple subscriptions to access our favorite shows and movies can be an annoyance. In addition, it adds to monthly expenses and creates a sense of subscription fatigue.
Remember when Netflix was only $8 a month and it was the only streaming service you needed? Well, that was less than 10 years ago! Today, the average American spends $46 a month on steaming services. That’s about a 16.52% increase in streaming costs each year.
Predicting the future growth of streaming services involves analyzing key metrics such as financial performance, subscriber growth, content strategies, and global expansion. Tools like Minitab Statistical Software can help forecast trends and identify which platforms are likely to thrive.
Let’s focus on the key competitors: Netflix, Hulu, Disney+, Max, and Peacock. In this analysis, we'll explore the key factors that differentiate these services and help viewers determine which platform best aligns with their preferences and budget.
A Bubble Plot is a type of scatter plot that visualizes relationships between three variables. Each bubble represents a data point, with its size, color, and position on the plot corresponding to the values of the three variables. By analyzing the position, size, and color of the bubbles, you can quickly identify patterns and trends among the services. For example, we wanted to figure out the relationship between subscription fees, global reach, and content library sizes. Points are plotted along the x and y axes based on accessibility and subscription fees, and then enlarged to match the size of the content library. Smaller bubbles located in the lower right corner would represent services with low subscription fees, wide global reach, and small content libraries. Since there are so many factors that determine the value in a streaming service, we can start here – and thankfully Minitab makes it easy.
In the graph above, there does not seem to be any apparent pattern between the services. Between the three variables we are plotting, current subscription price, global accessibility, and content library size, there are differentiators that spread them out across the plot.
Since we aim to identify the most comprehensive streaming service that can meet our current viewing needs in a single platform, we need to identify which factor is the most important to us. In terms of longevity, the largest content library is going to give us the most options to browse through.
By looking at sizes, we can see two points, Max and Netflix, that are visibly larger than the others which indicates they have the largest selection. Both services are similar in subscription price, our next deciding factor. So, let’s look at global accessibility to help us decide between the two. Netflix, located far right, is approximately four times larger in comparison to Max. Netflix stands out for its extensive content library and global accessibility, making it the best option for viewers who want a wide variety of content available worldwide.
So, that makes our decision pretty simple. If we want the service that has the most content and accessibility worldwide, Netflix is the best option. Although the cost is higher in comparison to some of the other services, the other factors outweigh the cost for this case. If we were to go with a cheaper option, there is a high chance our needs will not be fulfilled, and we’ll have to add another service which is what we are trying to avoid.
There are many reasons to choose a streaming service. If you’re looking to make a decision what subscription will suit you for years to come, being able to predict the trend is helpful.
Let’s continue with our example. If cost is the most important factor for your decision in the long-term, you may want to forecast what your costs will look like in the future. For example, if Netflix's subscription costs rise significantly in the future, it might make competing services more attractive. To avoid subscription fatigue, we'd prefer to find a streaming platform that can meet our long-term needs without requiring frequent switches.
Again, we turn to Minitab to forecast Netflix’s value to us in the coming years. We decide that if the price increases to more than $20 by the year 2030, it may not be the best choice for us today.
Given the current upward trend we see in this data for the price of a Netflix subscription, let’s use Double Exponential Smoothing to provide the forecasts.
Based on this analysis, we can see that the price of Netflix in the year 2030 is forecasted to be under $20. This suggests that Netflix is likely to remain a viable and affordable option for us in the coming years.
Putting this analysis together and looking at my streaming needs, Netflix comes out on top! While other services have their niches that some people find valuable, Netflix's consistent delivery of high-quality original content and popular licensed titles sets it apart from other streaming services. Additionally, the platform's user experience, including its ease of use and recommendation system, makes it the best option for me when trying to eliminate some subscriptions in this case.
What is the future of streaming platforms? The streaming industry is in a constant state of flux, driven by fierce competition, technological advancements, and changing consumer preferences. Platforms that invest in diverse content and global accessibility are expected to thrive. By leveraging data analysis tools like Minitab, we can gain valuable insights into these dynamics and predict future trends. As platforms continue to innovate and adapt, the battle for viewers’ attention will only intensify, shaping the future of entertainment.
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