I'm sure you have asked yourself this question on several occasions in recent weeks. The audiovisual entertainment sector is experiencing an unprecedented boom period due to the popularization of video-on-demand (VOD) services. In addition to the wide range of free-to-air television, the audience has access to pay TV operators -mostly linked to telecommunications companies such as Movistar or Vodafone-, subscription VOD platforms -Netflix, Prime Video, HBO Max or Disney +-, free ones -Pluto TV- and other audiovisual social networks -such as YouTube, Tiktok or Twitch-. In this context, the fight for audience attention and loyalty is on.

Technological innovation has always had a significant impact on the audiovisual entertainment sector, both in the production and management of content, as well as in its consumption. As a result, disruptive habits have arisen that enhance personalization, interactivity - pending metaverse - and mobility. However, viewing continues to take place mostly on the television set at home and at night.

Despite the boom in subscription video-on-demand platforms, the economic difficulties resulting from the post-covid era and geopolitical tensions have begun to strain the resilience of these companies at test .

After a period of growth and investment, the sector is stagnating. For this reason, the main online video platforms have initiated a policy of price increases, project cancellations and greater restrictions for users with cheaper subscriptions. The end of shared accounts can be explained by this movement.

In addition, the fact that there is no single neutral agent to certify audiences -as there is in linear television- hinders the viability of the business models.

While VOD operators strive to expand their catalogs to be competitive and satisfy the audiovisual hunger of an audience accustomed to binge watching series, viewers have limited time for leisure and economic resources constrained by inflation. Despite this, 65% of users of this platform subject subscribe to more than one service, with the combination of Netflix and Prime Video standing out as the most common in Spain (OTT Barometer, Geca, 2022).

Traditionally, the audiovisual business model has revolved around major productions, on the success of which the turnover of audiovisual companies depended to a large extent. In this modality, high budget titles attract audiences, especially during the first weeks after the premiere, when most of the revenues are concentrated.

However, the popularization of video-on-demand platforms has boosted the model of the "long tail", based on a Economics of abundance.

This strategy involves configuring a very broad offering in order to "sell a little of a lot" in a sustained manner over time, so that products have a longer commercial life, without concentrating almost all turnover during their launch. On internship, it means having a varied and abundant catalog to meet the demand of a wide range of audiences.

goal The two models are not mutually exclusive, but rather go hand in hand. sample is the fact that the main platforms maintain their commitment to a profuse catalog while releasing blockbuster titles from time to time, with the dual purpose of attracting new subscribers (while retaining current ones) and obtaining nominations for the most important awards, such as the Oscars or the Emmys.

In this context, linear television operators - used to operating in a highly regulated oligopoly with strong barriers at entrance- have witnessed a process of multiplication of the skill for the audience's attention and resources, as well as for the advertising pie and the personal data .

For these reasons, the audiovisual sector is witnessing a twofold phenomenon: the under-demanding of linear television operators, which have decidedly opted for their own VOD platforms -Atresplayer, Mitele and RTVE Play, among others, in the case of Spain-, and the televising of streaming services.

Now these windows also premiere new episodes with a weekly seriality, offer subscription options with advertising, the possibility of initiating simultaneous group viewings that allow emulating live TV -functions like Disney+'s groupwatch-, and the creation of customized linear pseudo-channels thanks to artificial intelligence algorithms -like the "Surprise me" button on each profile of Username on Netflix, which saves time in exchange for sacrificing freedom of choice-.

Regarding the inclusion of advertising, according to data of Geca's OTT Barometer (2022), more than half of the users tolerate the presence of commercials in exchange for a reduction in the subscription fee.

The absolute personalization of the audiovisual offer through resource to artificial intelligence and big data represents one of the great challenges facing the sector.

In this sense, the automatic recommendations of streaming services are only a first step, and other options are yet to be explored, such as gamification and socialization of choice processes on the design interface of Username.

AI stands out as a fundamental tool to achieve an efficient management of content catalogs, in turn enabling a sustainable production policy based more on customization and quality, and less on quantity.

The search for sustainability, profitability and audience loyalty stand out as priorities for video-on-demand platforms. To achieve this goal, the experience of Username is crucial, but the content catalog -including live content- is even more important. We, as viewers, are the cornerstone of the model business and the ones who decide which audiovisual service provides the most value. What are we watching tonight?