Parks Associates: Generative AI is Paving the Way for Innovative Streaming Business Models

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Mar 13, 2024, 08:32 ET

US internet households spend $73 per month on average on streaming services

DALLAS, March 13, 2024 /PRNewswire/ -- Parks Associates, in partnership with FPT Software, today announced new research, Maximizing Returns: Generative AI's Impact on Entertainment, addressing the emergence of generative AI (GAI) and its impact on the entertainment industry and streaming services. Parks Associates research shows that consumers now spend $73 per month on average on streaming services, an amount similar to the monthly costs of traditional pay TV.

Parks Associates: Generative AI is Paving the Way for Innovative Streaming Business Models

Rising content costs are driving a surge in service consolidation, higher subscription costs for consumers, and higher expenses for streaming providers. To counteract losses, streaming providers are evaluating how they can strategically employ GAI, which has applications across the content lifecycle, from content creation to distribution and consumption, to control costs while still delivering an enhanced and personalized user experience.

"Uses of generative AI include providing a natural language interface for editors and content curators or creating content descriptions of different lengths for different platforms/applications," said Sarah Lee, Research Analyst, Parks Associates. "The automation afforded by generative AI can easily shave off many hours of work for individual contributors – and save expenses for companies."

Generative AI opens new paths for monetization. For example, as streaming providers deploy more ad-based services, they are actively seeking ways to make advertising more interactive and actionable for a viable shoppable experience. Generative AI can expedite the creation and editing of custom ads so ad agencies can easily generate several versions of advertisements to experiment and determine their efficacy among different audiences.

"Leveraging AI in media and entertainment presents exciting opportunities across the media supply chain, with the promise of significantly reducing both content provider and service provider costs while also improving the end user experience," said Ira Dworkin, Managing Director - Communications, Media, & Entertainment, FPT Software. "FPT Software is investing heavily in AI – both Generative AI and Machine Learning – and partnering with our customers to drive innovation throughout the ecosystem."

The white paper highlights concerns around copyright and human rights issues with using GAI, particularly in the media ecosystem. Further, it presents examples of GAI tools already available for use in entertainment and offers guidance on steps media companies can take now to be ready to implement generative AI as these models and tools mature.

"The applications and possibilities that generative AI can create are virtually endless," Lee said. "The world of AI is evolving quickly and those that evolve along with it will be able to transform their business."

To schedule an interview with an analyst or to request specific data, contact Mindi Sue Sternblitz-Rubenstein at [email protected] or 972-490-1113.

About Parks Associates
Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets. https://www.parksassociates.com

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Mindi Sue Sternblitz-Rubenstein
Parks Associates
972.490.1113
[email protected]

SOURCE Parks Associates