# Navigating the Crowded Streaming Landscape: Strategies for Success
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Chapter 1: The Streaming Revolution
The past year of isolation has highlighted the significant role that streaming services play in our daily lives. From indulging in countless Netflix series to enjoying e-sports tournaments, this new era of digital engagement has underscored how essential online content consumption has become for many. Services like Prime Video, BBC iPlayer, Netflix, HBO Now, Twitch, and YouTube are readily available at our fingertips, shaping our entertainment experiences.
However, this growing reliance has resulted in an oversaturated digital streaming market across various sectors. There seems to be a platform or service for nearly every conceivable need, making it increasingly challenging for new entrepreneurs to discover viable opportunities or niches. Despite the challenging landscape, ambitious creators and enthusiastic investors continue to pursue their dreams, often facing setbacks due to a lack of understanding of the competitive industry. Many adopt either a "Creator-First" or "Original Content-First" strategy, but both approaches have frequently fallen short. So, how can one successfully navigate this crowded terrain?
Section 1.1: The Creator-First Approach
A notable example of the "Creator-First" strategy is Mixer, a live-streaming platform created to compete with Twitch, owned by Amazon. Co-founders Matt Salsamendi and James J. Boehm, backed by Microsoft, sought to attract streamers by luring them away from Twitch and other smaller platforms. They managed to bring popular creators like Ninja (Richard Belvins) to Mixer, which reportedly earned him over $30 million. Nevertheless, on June 22, 2020, Mixer announced its merger with Facebook, marking the end of the platform as we knew it.
"No matter where you choose to stream, the world is better with your gaming content in it. As the operations side of @WatchMixer is closing, we are inviting the Mixer Community to #FacebookGaming." — Facebook Gaming on Twitter
"Mixer Partners, streamers, and community — today, we've got some very big news for you. While we've decided to close the operations side of Mixer, we're officially partnering with @FacebookGaming and we're cordially inviting all of you to join." — Mixer on Twitter
This scenario illustrates a recurring failure in the creator-first model. Simply investing in popular creators does not guarantee the innovative edge needed to draw users away from established platforms. Convincing audiences to switch from one service to another is incredibly difficult, regardless of the financial incentives offered. To effectively attract a hesitant audience, a platform must have not only a loyal fan base but also a substantial number of followers—a challenging milestone for any newcomer.
Section 1.2: The Original Content Dilemma
When examining the "Original Content-First" strategy, it's crucial to recognize that this approach is limited to certain verticals, primarily video-based services that create or showcase original content. The challenge with prioritizing original content is that the audience may not be large enough to generate the viewership required to justify the significant investments made in that content. This can lead to a lack of buzz and, subsequently, stagnation in viewership growth.
Quibi, an American short-form streaming service founded by Jeffrey Katzenberg in August 2018, is a case in point. Despite raising approximately $1.75 billion from investors, Quibi struggled to sustain itself and ultimately folded after just six months in a highly competitive market. By the third quarter of 2020, the platform had already burned through $1 billion. While the focus on original content wasn’t the sole factor in its downfall, it was certainly a significant issue. The shows produced failed to resonate with audiences, despite heavy investments in renowned Hollywood talent and top-tier studios.
For those considering an original content approach, it’s advisable to wait until a platform is established and has achieved solid viewership numbers. Netflix exemplifies this strategy; they began by offering subscribers access to popular movies and series before successfully venturing into original content, resulting in hits like "Stranger Things" and "Bird Box."
Chapter 2: Insights and Recommendations
To steer clear of failure when launching a new product, it's vital to prioritize consumer needs. While I may lack insider expertise, I can share insights from a consumer perspective. The creator-first approach is fundamentally flawed, and companies like Mixer must prioritize developing products that resonate with consumers, which will, in turn, foster a supportive creator community.
This principle also applies to the original content strategy. As previously discussed, establishing a platform and amassing a solid audience is essential before introducing original content, similar to Netflix and Prime Video’s successful trajectories. Ultimately, the success of a new platform will depend on its objectives and the resources available for growth.
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