Over the past decade, the entertainment industry has experienced a seismic shift, moving away from traditional theatrical movie viewership towards a streaming-dominated landscape. This transformation has been driven by technological advances, changing audience preferences, and significant social disruptions like the COVID-19 pandemic, which accelerated the transition by compelling people indoors and increasing the demand for home entertainment. As streaming services like Netflix, Amazon Prime, and Disney+ continue to grow, they are not only changing how content is consumed but also redefining the very fabric of the entertainment industry. The impact of streaming has not only affected Hollywood but also global entertainment industries which also includes Indian film industries.
A new paradigm: the rise of streaming media
Streaming media refers to the digital distribution of various content forms, including movies, TV series, gaming, music, podcasts, e-books, and audiobooks. The technological ease of smart devices has caused streaming to be increasingly integrated into everyday life due to its accessibility and convenience. This shift has had profound effects on audience behaviour, leading to a decline in traditional TV viewership and theater attendance, with the Video Advertising Bureau (VAB), formerly known as the Cable Television Advertising Bureau (CAB), attributing up to 40 per cent of TV rating decline in 2015 due to the rise of streaming services. The evolution of streaming can be seen as part of a broader trend in media convergence, where different forms of digital media have merged to create new experiences for audiences. This trend has democratised access to content, allowing viewers to consume media on their own terms—anywhere, anytime. The ability to watch films and series without being tied to a schedule has made streaming an attractive option for millions of viewers worldwide, providing instant gratification in a way that traditional formats cannot match.
Binge-watching: the new normal
One of the most significant cultural phenomena arising from the streaming era is binge-watching, defined as consuming multiple episodes of a series in one sitting. This practice is distinct from traditional TV marathons because it occurs on demand, without the interruptions of commercials. The lack of external distractions allows viewers to become fully immersed in the narrative, leading to deeper emotional engagement and even parasocial relationships—the feeling of forming a personal connection with fictional characters. Binge-watching is fuelled by the narrative structure of many streaming series, which often include cliffhangers designed to keep viewers hooked. This storytelling approach encourages viewers to continue watching and thinking, “just one more episode,” sometimes leading to hours of continuous viewing. The social aspect of binge-watching is also noteworthy; it has become a shared cultural experience, with viewers discussing episodes on social media and participating in online fan communities. Platforms like Facebook have become digital archives where audiences can share their thoughts, theories, and reactions in live-time, further blurring the lines between content consumption and social interaction.
The impact of COVID-19 on viewing habits
The COVID-19 pandemic accelerated the shift to streaming as theaters closed and people sought new ways to entertain themselves at home. The surge in streaming was immediate and dramatic, with platforms like Netflix reporting record viewership numbers. For instance, the action film The Old Guard reached 72 million viewers in its first week of release, demonstrating that streaming services could generate audiences comparable to blockbuster theatrical releases. This trend signaled to the industry that streaming was not merely an alternative to theaters but a legitimate primary platform for content distribution. As a result, major studios began to release films directly on streaming services, bypassing traditional theatrical distribution. This direct-to-consumer model provided immediate media accessibility and catered to the public’s growing preference for on-demand streaming content without having to Pay-Per-View. Even as theaters have reopened, many viewers across the world have continued to favour streaming, citing convenience, affordability, and a growing library of original content as key factors through monthly memberships.
Changing power dynamics in the entertainment industry
The rise of streaming has also shifted the balance of power within the entertainment industry. Traditionally, studios and theaters maintained a symbiotic relationship, with box office revenue serving as a critical measure of a film’s success in combination with critic reviews, and audience word-of-mouth. However, streaming services have upended this model by focusing on different metrics, such as subscriber growth, viewer engagement, and social media buzz. The competition among streaming platforms, often referred to as the “streaming wars”, has led to an explosion of exclusive content as companies vie for subscribers. Streaming services are not just distribution channels; they have evolved into major producers of original series and films, with budgets rivaling those of mega Hollywood studios. This competition and frequency of global content has elevated the quality of streaming content and blurred the lines between television and film, as many streaming series feature cinematic production values and A-list talent.
Social media’s role in streaming media consumption
Social media platforms play a crucial role in the streaming ecosystem by serving as hubs for audience engagement. Facebook, Twitter, and Instagram provide spaces where viewers can discuss content, share recommendations, and form fan communities. These platforms act as a feedback loop, influencing content creators and executives who monitor viewer responses to gauge the success of their shows and make decisions about future programming. Thematic analyses of social media engagement can reveal recurring patterns in viewer behavior. For example, discussions around popular streaming series often highlight themes such as escapism, character identification, and narrative anticipation. These conversations provide valuable insights into why certain shows resonate with audiences, helping streaming platforms optimise their content strategies. By understanding which themes drive engagement, platforms can tailor their content to meet audience expectations and keep subscribers hooked.
The decline of traditional movie theaters
While streaming services continue to thrive, traditional movie theaters face an uncertain future. The pandemic exacerbated pre-existing challenges for cinemas, which have struggled to compete with the convenience of streaming. Although theaters still hold an advantage for big-budget spectacles that benefit from the immersive experience of a large screen and surround sound, they are losing ground when it comes to everyday movie-watching. Viewers have become more selective about which films they are willing to see in theaters, often reserving their trips for highly anticipated blockbusters or for the group viewing experience. For other types of content, especially drama and comedy, streaming has become the preferred medium. This shift has forced theaters to rethink their business models, with some chains experimenting with premium experiences, such as luxury seating, gourmet concessions, and immersive sound systems, to lure audiences back. The success of anthology series or documentary limited series demonstrates the appeal of unconventional storytelling formats that break away from linear narratives. These shows take advantage of the unique capabilities of streaming platforms to offer varied episode lengths, experimental visuals, and innovative storytelling techniques that would be challenging to implement in traditional media.
The future of entertainment in a streaming world
As streaming continues to evolve, it is likely to remain a dominant force in the entertainment industry. The rapid adoption of new technologies, such as virtual reality (VR) and augmented reality (AR), may further transform how audiences interact with content, providing more immersive and interactive viewing experiences. Additionally, the expansion of 5G networks will enable faster streaming and higher-quality video, enhancing the convenience and appeal of on-demand content. However, the industry must also address challenges related to content overload, where the sheer volume of available shows and movies makes it difficult for viewers to choose what to watch. Curation, personalised recommendations, and social sharing will play crucial roles in helping audiences navigate the streaming landscape. As the line between creators and consumers continues to blur, platforms may increasingly involve viewers in content development through interactive features and crowd-sourced feedback. The migration to streaming has not only changed where we watch content but also how stories are told. The episodic nature of streaming series allows for more nuanced storytelling, with the flexibility to explore character arcs and plotlines in greater depth than traditional films. Binge-watching culture has also influenced content creators to craft narratives that cater to this new mode of consumption, often incorporating cliffhangers and interconnected storylines that encourage continuous viewing. Ultimately, the rise of streaming media represents a fundamental shift in how we consume and engage with entertainment. It has democratised access to content, redefined storytelling formats, and reshaped audience behaviour in profound ways. As the streaming wars rage on, the future of entertainment will likely be characterised by continuous innovation, with streaming platforms leading the charge into new frontiers of digital media consumption.
The writer is a PhD holder in Strategic Media.
Views expressed are personal