US internet households spend $73 per month on average on streaming services
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.
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 mindi.sue@parksassociates.com or 972-490-1113.
About Parks Associates
Parks Associates is a global research, consulting, and marketing firm with 40 years of experience delivering proprietary consumer data and industry insights for businesses. The firm produces market research reports, forecasts, surveys, and competitive business intelligence on connected consumer, small business, and commercial technologies and related business solutions. A woman-owned and woman-led company, Parks Associates is a trusted partner and advisor to executives, providing custom research, strategic consulting, and forward-looking analysis across smart home, small business, and commercial markets, including security, broadband, entertainment, energy, multifamily, smart buildings, connected health, and emerging AI-driven technologies.
Parks Associates supports industry growth through proprietary research, consulting, and executive networking and convenes thousands of leaders each year through its flagship conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.
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