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Video streaming services can balance content spending and customer acquisition costs by implementing additional monetization strategies. This could include introducing tiered subscription models, incorporating advertising, or offering additional services. They also need to focus on expanding in emerging markets where growth potential is high and price points are lower. It's also crucial to invest in high-quality content that attracts and retains subscribers, thus reducing customer acquisition costs.
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This brings us to content spending. The top eight video streaming services are estimated to spend around $140 billion on content this year. With customer acquisition costs rising in a saturated market, this is no longer sustainable without additional monetization strategies. All of these networks need to compete for global subscribers, and most of that growth will likely come from emerging markets where price points are lower.
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