Television Service providers such as Comcast and Verizon have been disrupted due to the IoT and Smart TVs. Netflix, Amazon Prime, Hulu among other streaming services have taken over this media space. According to Investopedia, in 2020 six million U.S. households stopped using their cable providers and it is forecasted that this number will grow to more than 46 million.
The future of marketing and streaming has a ton of potential regarding data collection and marketing and advertising. Speaking with Michael Ciunci, Senior Information Security Consultant, advertising and marketing will shift due to the popularity and the increase of usage of online streaming services. Advertisements will be located on your home screen while you are scrolling through your apps. Instead of having commercials that last a few minutes during a program as we typically see while watching live TV, our subscription services will have banner ads such as the ones we see on Facebook or Instagram. These types of ads will direct viewers to use another smart device (cell phone, computer, iPad, etc.) to the company’s website while they are streaming. A lot of viewers, especially millennials are already constantly on their phone while they are watching Netflix, Hulu, Amazon Prime, etc so these ads directing them to their website or app while the customer is on their phone will be a great way to get the consumer to the advertised product or company.
These streaming services are collecting endless amounts of data while we view. They can track our viewing history, what advertisements we view or skip, what apps we have downloaded, how often and for how long we use them. These TV providers than can sell this data to other companies. They can use this information to improve products and services along with helping target advertisements that are seen on your TV. For example, once the company learns about their household is watching sesame street, the advertisements will start to target towards diapers and baby products. Using this data IoT collects from each household, companies willbe able to offer geographic targeting as well. This geographic data collected allow companies to use their locality and demographics to help market the product better to the consumer.
The future of streaming services seems to have endless possibilities when it comes to data collection and future marketing plans. I believe in the long run our smart TVs will be able to allow us to click on an ad to buy the product direct from our TV or by this time our phones will be connected and have the product or webpage show up instantly on our phones while we are watching. I believe television providers will become subscription services and if they do not, they will eventually be extinct.
Tarver, Evan. “3 Predictions for TV in the next 10 Years.” Investopedia, Investopedia, 27 Sept. 2021, https://www.investopedia.com/articles/investing/021816/3-predictions-tv-next-10-years.asp.