Now it’s the time to become a cord-cuter; new streaming services are launching, and the companies involved are offering free deals to get more people to sign up.
Will these incentives last forever?
Isn’t it possible that those freebies will expire, and the cost of streaming services increase?
A lot of free content
During the 3Q2019 and the first half of 2020, AT&T, Apple Inc. (NASDAQ:AAPL), Comcast Corporation (NASDAQ:CMCSA)’s NBCUniversal and Walt Disney Co (NYSE:DIS) are all launching their new and somewhat exciting video streaming services. Apple TV+, Apple’s streaming service, was launched last Friday.
Streamers now have a chance to enjoy free services in one way or another. Until now, Netflix Inc (NASDAQ:NFLX) has dominated the streaming space and is said to have more than 150 million subscribers globally. The newcomers have begun experimenting with a ‘freemium’ model where their esteemed subscribers can access free content. The hope is that they will like the services enough to start paying subscription fees later.
Nowadays, there is a lot of free content. Congratulations to those who are Verizon Wireless subscribers acquired a new iPhone recently, and are also subscribers of HBO – guys, you have hit a jackpot of free stuff.
These free offers are intended to help each streaming service grow faster than Netflix ever did. For instance, Apple is likely to sell about 100 million devices eligible for the recently-launched Apple TV+ by the end of the year.
On the other hand, Verizon already boasts of more than 150 million wireless subscribers worldwide. Even if a small percentage of those subscribers choose the free offers, the chances are that Apple TV+ and Disney+ will have millions of subscribers within a few months.
But the free content won’t last forever
In an increasingly competitive streaming market, it’s almost impossible for anyone to become a winner. They will have to give the users a reason to choose their services. You already witnessed the first casualty in the streaming battled on October 29th when Sony announced its intent to shut down its PlayStation Vue early 2020. It likely will not be the last one to die.
So, it is time for streamers to binge while they still can as the free ride will be short-lived.