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Video streaming services can manage their content spending to remain sustainable by implementing additional monetization strategies. This could include introducing tiered subscription models, incorporating advertising, or offering premium content at an additional cost. They could also focus on producing high-quality, exclusive content to attract and retain subscribers. Furthermore, they could explore partnerships or collaborations to share the costs of content production.
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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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