How does the competition among video streaming services impact their content spending?

The competition among video streaming services significantly impacts their content spending. As these services strive to attract and retain subscribers, they invest heavily in content creation and acquisition. This is particularly true in a saturated market where customer acquisition costs are rising. However, this level of spending may not be sustainable without additional monetization strategies. The competition is especially intense for global subscribers, with much of the growth expected to come from emerging markets where price points are lower.

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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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The growth of video streaming services in emerging markets is expected to be higher than in established markets. This is because established markets are becoming saturated, with customer acquisition costs rising. On the other hand, emerging markets offer a large pool of potential new subscribers, and the lower price points in these markets make the services more accessible to a larger audience.

The potential consequences of not having additional monetization strategies for video streaming services could include unsustainable spending on content, increased customer acquisition costs, and difficulty competing for global subscribers, especially in emerging markets where price points are lower.

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