What Display Daily thinks: the streaming business is going through a period of change after the blessings of the pandemic era, at least the blessings that were heaped on the streamers while the world isolated around its TVs.
Now, the challenge is the increasing cost of streaming, the extreme competition among the media companies that own the streamers, and a general downturn in consumer willingness to pay for services.
Samsung is obviously pitching itself to the community of content providers that reads Variety magazine, and it has a base of over 600 million devices around the world to leverage. How effective will device makers are going to be at, essentially, selling ads and software services (whether VOD or FAST or streaming bundles or gaming hubs)? Samsung has the installed base, and yes, tracking people’s viewing and behaviors on their TVs provides valuable marketing insights if not ad revenues, but whether content is a successful strategy for all device makers is not clear.
Neither is relying on technology or display size. The nature of the TV experience has changed and is not limited to a standalone device in a living room or a den or a bedroom. Content is consumed across multiple devices, and it is hard to predict what consumers will do next. Samsung has equally large numbers of TV devices and smartphones being used around the world. It has a unique position yet success is not guaranteed, at least not in terms that would fit a company of its size.
Apple should have got into the TV business. It’s the one area where there is a need for a new user experience. Damned if I know what that could be, but it certainly needs to be one that incorporates all the devices that a user uses and integrates into a mobile, wireless world. And that’s the opportunity for Samsung. It can bridge the gap between the TV and the smartphone, the starting point of the next generation of TV viewing, whatever that may mean.
For now, all we know is that TVs will keep getting bigger, and that’s going to create the false impression that is all is well with the industry. Maybe it is just an upgrade cycle.
Samsung’s Successful Pivot: From VOD Flop to FAST Channel Leader
Variety has a nice puff piece on Samsung, which has been the world’s leading TV manufacturer for 17 consecutive years, selling 8.3 million units of its CTVs last year. Initially, Samsung’s attempt to enter the video-on-demand (VOD) market with its TV Plus platform in 2016 failed due to low consumer interest in purchasing content directly from Samsung. However, in 2019, the company pivoted by offering free, ad-supported streaming channels on the TV Plus homepage, which significantly increased viewer engagement.
This shift to free streaming channels, known as FAST (free ad-supported streaming TV), has been successful, particularly during the pandemic. Samsung TV Plus now offers over 2,600 free channels, including content from major Hollywood studios and themed channels for various genres. The platform has grown to become the world’s largest distributor of FAST channels, providing a new revenue stream for content owners through advertising proceeds shared with Samsung.
Samsung’s unique distribution method is based on its extensive TV sales rather than traditional viewer metrics, reaching about 630 million devices in 24 countries. The platform’s content lineup has expanded to include live sports, news, and exclusive channels, enhancing viewer experience and increasing advertising revenue.
Samsung’s investments in content partnerships and live events have further solidified its position in the competitive TV content marketplace. The company’s ability to leverage viewer data for content decisions and advertising customization is a significant advantage, at least according to Variety. Although the advertising revenue from FAST channels is currently a small part of Samsung’s overall income, it is poised for growth and provides valuable consumer insights for the company.
