### Decrease in Viewer Satisfaction with Streaming Media: An Escalating Issue for the Sector
Subscription rates for video streaming services have been consistently rising, yet surveys indicate that viewers are increasingly dissatisfied with the content on offer. As the streaming sector endures mounting financial challenges, the “Peak TV” era appears to be diminishing, prompting subscribers to reevaluate the worth of their subscriptions.
#### The Conclusion of Peak TV
As 2024 commenced, the industry started to announce the conclusion of “Peak TV,” a concept introduced by FX Networks chairman John Landgraf. This phase, which lasted over ten years, was characterized by a surge in high-quality, original programming that drew millions to streaming services. Series like *The Wire*, *Breaking Bad*, and *Game of Thrones* epitomized this illustrious period in television, during which streaming platforms vied intensely to create critically cherished content.
However, as streaming companies grapple with achieving or sustaining profitability, 2024 witnessed a decrease in the volume of new scripted series for the first time in over a decade, according to FX Research. This reduction in original content has mirrored a discernible decline in viewer satisfaction.
#### Diminishing Subscriber Satisfaction
Recent polling data reveals that overall content satisfaction among streaming service users has been on a downward trend for the past few years. While the decrease in perceived quality remains relatively slight, it is still alarming, particularly in light of the regular hikes in subscription fees.
For instance, the most viewed TV series in 2023 was *Suits*, a show that first aired on the USA Network and concluded in 2019. The fact that an older, non-original program led the streaming ratings underscores the industry’s difficulties in delivering new, engaging content that captivates viewers.
#### Survey Results: A Distinct Decline
Earlier this year, TiVo published its *Q2 2024 TiVo Video Trends Report: North America*, based on a survey of 4,490 individuals in the US and Canada. The findings displayed a drop in the percentage of subscribers who rated the quality of content from their subscription video-on-demand (SVOD) services as “moderate to very good.” This trend was evident in both ad-supported and ad-free streaming services.
In Q2 2022, 78.6% of participants rated their ad-free SVOD service as having “moderate to very good” content. By Q2 2024, this figure had decreased to 74.5%. For ad-supported services, the fall was even more pronounced, dropping from 74.2% in Q2 2023 to merely 60.8% in Q2 2024.
#### Financial Difficulties and Content Quality
Scott Maddux, VP of global content strategy at TiVo’s parent company Xperi, highlighted several potential factors contributing to the decline in satisfaction. One reason is the transition towards ad-supported models, which may foster the impression of diminished content quality. Furthermore, many streaming firms are encountering financial obstacles, which could hinder their capacity to create new, high-caliber content.
“As an increasing number of consumers migrate to ad-supported SVOD services, the perception of content quality could also have shifted downward somewhat,” Maddux articulated. He also pointed out that the overall volume of new original content on SVODs might have declined year-over-year, as various streamers continuously strive to meet profitability goals.
#### Effects of Strikes and Budget Reductions
The downturn in content quality is not solely attributed to financial hurdles. The sector has also faced external influences, such as the writers’ and actors’ strikes in Hollywood in 2023. These labor disputes disrupted production timelines and postponed the release of several eagerly awaited shows and films.
Streaming companies have likewise executed substantial budget reductions in recent years. As reported by *Variety*, firms like Amazon, Disney, Netflix, and Warner Bros. Discovery are anticipated to decrease their content expenditures from 2023 to 2026 in comparison to the preceding five years. While worldwide content investment is still projected to rise, much of this increase will stem from climbing production costs rather than enhanced content volume or quality.
#### Subscriber Expectations and the Future of Streaming
As streaming services continue to elevate pricing, subscribers are looking for greater value. TiVo’s survey identified content quality as one of the leading factors prompting individuals to sign up for a new streaming platform. The primary motivations for subscribing include a vast library of quality programming, specific shows or films, and compelling original content.
Yet, the era of streaming services providing an unceasing flow of must-see content may be coming to a close. A report from *Bloomberg* noted that Netflix, for instance, is shifting its strategy towards creating fewer, higher-quality films instead of acquiring content from film studios. This change signifies a broader industry trend where streaming providers are becoming more selective regarding the projects they support.
#### The Urgency to Enhance
With the competition in the streaming arena intensifying, the pressure on providers to improve their offerings continues to grow.
