How does the spending on content by video streaming services impact their profitability?

The growth of video streaming services in emerging markets is expected to be higher than in established markets. This is because established markets are becoming saturated, with customer acquisition costs rising. On the other hand, emerging markets offer a large pool of potential new subscribers, and the lower price points in these markets make the services more accessible to a larger audience.

The potential consequences of not having additional monetization strategies for video streaming services could include unsustainable spending on content, increased customer acquisition costs, and difficulty competing for global subscribers, especially in emerging markets where price points are lower.

Video streaming services can manage their content spending to remain sustainable by implementing additional monetization strategies. This could include introducing tiered subscription models, incorporating advertising, or offering premium content at an additional cost. They could also focus on producing high-quality, exclusive content to attract and retain subscribers. Furthermore, they could explore partnerships or collaborations to share the costs of content production.