Everybody’s screaming about streaming
So after a slow start, the market for pay-per-view streaming services all of a sudden seems flooded. If you are an artist or an organiser looking for the right solution to monetise your digital content, it is hard to manoeuvre between what appears to be lots of great products.
Everybody’s screaming about streaming, but the harsh reality is that there are a limited number of companies that actually delivers a full service pay-per-view live streaming and video on demand service. Most of the players in the market just appear to do so.
At TicketCo we are more fond of positioning our own strengths rather than our competitors’ flaws, but in the chaos that surrounds us these days we have chosen to make an exception from this rule. There are simply too many different operators out there right now, jostling for position and misleading people along the way
A streaming service without any streaming included
Take this company as an example. This is its user manual. There are lots of things to comment on here, and the most obvious is of course that this streaming service does not support any TV apps. As the manual clearly states, the viewing options are limited to a phone or a computer. That is not TicketCo’s definition of user friendliness.
The second issue is that the ticket buyer will receive an e-mail with a link to the stream on the morning of the event. Why is that? One likely reason for withholding this key information may be to prevent the link from being shared, as many of our competitors are missing a verification function in their service. This enables multiple entries through the same ticket, which of course is a huge deficiency and an obvious revenue threat for the organiser.
Then it gets serious, because what is actually the case with this service (and many similar to it) is that this to all intents and purposes is not a streaming service. It’s simply a ticketing service for a streaming service. The organiser then needs to purchase elsewhere. “We want the artist to choose the streaming platform of their choice” is just a cover for admitting ‘We don’t have any streaming service included.’
So for this actual service, with TV as a part of its name, the brutal fact is that it does not support any TV apps, and it does not include streaming. Not much of a choice if you want your fans to discover and stream online events.
Goldman Sachs foresee a 400 percent growth
Then the big question remains: will the fans discover and stream online events in years to come, or is the streaming trend just a hype that will vanish as soon as COVID-19 has passed?
Goldman Sachs have a clear opinion on this matter. They just released a report where they predict a revenue cutback of 25 percent from live music in 2020. At the same time they foresee that the live streaming audience will grow by 400 percent by 2030, from today’s 341 million to 1.2 billion. The yearly global revenue is expected to increase from 60 to 112 billion pounds within the same period.
You need to reach the early majority
These are large numbers, and for a music industry badly hit by the Corona crisis this report brings hope for the future. But a word of caution: a blocker to the Goldman Sachs predicted future are the abundance of inadequate streaming services that are flourishing right now.
The key to reaching the Goldman Sachs’ numbers are smooth customer experiences. The general public are merciless when they are confronted with poor customer journeys, and sadly a lot of the streaming services available in the market right now offer just that. A mixture of legacy ticketing tech and premature streaming tech doesn’t make magic. Instead it creates a huge gap between the early adopters and the early majority, which is a severe problem, because building a bridge between these two customer segments is the key for any commercial success.
Innovation adoption lifecycle
The innovation adoption lifecycle is a well known and verified model that describes the adoption or acceptance of a new product or innovation, according to the demographic and psychological characteristics of defined adopter groups.
Pay-per-view live streaming and video-on-demand of concerts is a new product so right now it mainly attracts the innovators and the early adopters. These customer segments are tech savvy and will cope with bad user experiences to reach their goals – which may be a pay-per-view live streamed concert with their favourite artist.
The early majority will not. They will back out when facing trouble, and the organiser who made the wrong choice when choosing their streaming partner will suffer a severe loss. They will not grow their audience via innovators, early adopters, early and late majority. Get it right and the audience could increase by 84 percent. But make the wrong choices and it could be stuck at 16 percent.
16 versus 84 percent – that is quite a difference.
A permanent turning point
One of TicketCo’s new Swedish clients is a great Gothenburg venue called Pustervik. Their capacity is 900 and they host 300 events a year. They signed up with TicketCo Media Services to earn revenue through pay-per-view livestream concerts during COVID-19 lockdown…. but now they also have a wider perspective.
“I think that what we are seeing with live streaming these days is a permanent turning point for the music industry. For sold out shows in the future, I guess the new normal will be to offer pay-per-view live streaming tickets instead of just announcing that the show is sold out,“ said managing director Daniel Levin in a recent interview for the TicketCo blog.
For Pustervik, live streaming is more than a passing activity during the Corona crisis. It is a long term project, and for this project they have chosen a reliable partner. So should you.