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Margins in Streaming Market Will Erode in 2021; Diversification is Key

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Predictions are difficult, especially about the future. 2021 will be another year of maturation and further consolidation of the streaming industry. Consolidation happens when innovation slows due to lack of growth and slowdown of the pace of innovation of the underlying technology. On top of these forces there is the COVID crisis. The COVID crisis added the disruption of the organic growth of the industry. COVID also brought about poor communication between customers and suppliers, canceled live events, which resulted in lower revenues for the originators of live streaming, and a lowered rate of innovation since people are less aggressive or expansive in their thinking. People became more cautious and some became slightly fearful. This all results in fewer advancements in technology and lowered innovation.

As for business predictions, I predict that the margins in streaming devices and streaming services will erode further. The players who survive the coming shakeout will be companies who can go to market at a reasonable cost. Furthermore, the existing larger companies will have to pick a few niches to excel in or they will be rendered ineffective in the later part of 2021. We at DVEO use our diversified product offerings to protect us from oblivion. Being small, diversified, and nimble gives us a competitive edge. We don't battle in the same arena as the big boys. We battle in our specialty good arena.

A new trend I foresee is that social interactions when watching sports will evolve. The ideas and concepts of e-sports will migrate to "real sports." We also will see multiple camera angles on all our screens. This makes sports more interesting and somewhat interactive. We at DVEO welcome the future and love participating at the niches.


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