The NAICS code for media streaming services industry is 518210. The industry is made up of entities that offer video and audio streaming services. For example, YouTube, Netflix, HBO NOW, Disney+, Acorn TV, Amazon Prime, Marathon TV, among others. The massive growth of streaming services is bringing new firms to the industry and more people are migrating from cable TV to streaming services (Inplayer, 2021).
Although, the industry was hit hard by the corona virus pandemic, there is hope that movie theaters, soundstages and productions that were disrupted would resume normally. And, the people who lost jobs will resume their previous roles in the industry (Lang B, 2020). But, the income that was generated by the industry shows that the industry has a brighter future ahead. The income is on the upward trajectory and lockdowns might have made people remain glued on their streaming subscriptions.
Unemployment rate and media streaming industry
The players in this industry should monitor unemployment rate since it can hurt the industry and cripple it. The subscribers of the media streaming channels are people with dollars to spend, if these subscriber’s income is taken away from them by unemployment then they may choose to opt to stop their subscription.
Unemployment rate trend 1990 to 2020
The graph below shows the unemployment trend in the United States. The 2020 rate was around 8% and it can be attributed to corona virus pandemic (Statista Research Department, 2021). This figure can cause a lot of alarm because the pandemic is still disrupting the normal daily life. But, the measures the government is putting in place for economic recovery might help in reversing the situation to where the nation was before the pandemic.
The future of media streaming industry
The future of media streaming industry is bright because of several reasons; one the generation that is coming up is digital oriented and therefore won’t accept to be limited by the traditional cable TV. The streaming services subscription allows one to access program of choice any time without waiting for a specific day (Morgan B, 2020). Two, fresh and customized content is luring people to subscribe to what they want. This is better compared to watching programs that do not match taste and preference of an individual. Lastly, the media streaming is becoming cheaper every day as it eliminates middle men that used to exist in the traditional TV.
