Lower price points in emerging markets for video streaming services could imply a few things. Firstly, it could mean that these services may need to find additional ways to monetize their platforms to sustain their content spending, especially considering the high costs of customer acquisition in a saturated market. Secondly, it could also mean that these services may need to be more competitive in their offerings to attract and retain subscribers in these markets. Lastly, it could potentially lead to a larger volume of subscribers, albeit at a lower revenue per user.
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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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