What Display Daily thinks: No one is going to want to hear this or deal with this, but the evidence that is piling up keeps pointing to cost pressures on the TV market and that can only be bad news for premium and next gen products, however you want to define those terms.
In simple terms, it hurts premium brands like Samsung more than a particular band of products because audiences seem less than happy with their premium content so, it is very unlikely that they will make for that shortfall by splurging on premium hardware.
I doubt any of this will lead to any soul searching in the short term, but I cannot see how premium TV brands and their premium displays can weather the storm without removing premium pricing. It’s unlikely that the market can help fund the path to economies of scale for premium displays under present circumstances.
Consolidation of resources might be the best path forward for LG and Samsung, and Chinese competitors are probably looking at making even more inroads in terms of market share in the North American market. None of this sounds like the optimistic expectations that 2024 would be a turnaround year for the industry.
I am not looking at the response of the TV manufacturers right now because they are not really giving me much to go on when it comes to explaining demand drivers. All other evidence suggests underlying problems that are not just blips.
Churn Rates Approaching 50% for Streaming Services
Market research firm, Parks Associates, has an upcoming webinar that highlights the challenges that streaming video service providers are currently facing in terms of maintaining customer satisfaction and loyalty. Subscriber churn is approaching alarming levels, indicating that a significant portion of customers are not satisfied with their current streaming services. The Net Promoter Score (NPS), a key metric used to gauge customer satisfaction and loyalty, has declined from the high levels attained during the pandemic. For instance, Netflix, a major player in the streaming industry, has seen its NPS drop significantly in recent years.
Streaming service providers are grappling with various obstacles, including economic headwinds, pressure to validate their business models, and crucial decisions related to business ownership and revenue strategies. To succeed in this competitive landscape, streaming services must prioritize building a loyal customer base, delivering an exceptional user experience, and offering unique services and content. Monitoring metrics such as NPS and churn can provide valuable insights into the effectiveness of their strategies and help inform future decisions.
Recent developments in the industry, such as the collaboration between ESPN, Fox, and Warner Bros. Discovery, may also have an impact on consumer sentiment and viewing behavior. Parks Associates, a prominent market research and consulting firm, is set to host a webinar to delve into these issues and provide expert analysis on the current state of the streaming video industry. The webinar aims to shed light on the challenges and opportunities that lie ahead for streaming service providers as they navigate this dynamic and evolving market.
