The application of artificial intelligence (AI) into streaming services marks a significant turning point in how people consume entertainment. With Apple TV’s AI-generated subtitles, Amazon Prime Video’s X-Ray Recaps, and Netflix’s dedication to machine learning initiatives, AI streaming technologies have become fundamental to how platforms operate, analyze viewer preferences, and deliver content.
In 2022, Grand View Research estimated the value of artificial intelligence in the media and entertainment market at $14.81 billion. By 2023, under new research from Polaris Market Research, that number had already risen to $19.52 billion. This is a nearly 32% increase, which is outpacing the 26% compound annual growth rate (CAGR) anticipated by Grand View Research. Polaris Market research estimates that the market share could be as high as $150.04 billion by 2032. Unless, of course, new data suggest that the rate of growth is surpassing expectations again.
The StreamSafely team has been eagerly watching these changes and growth spurts take place. This is a new and exciting time for streaming, so let’s discuss how AI is already making waves in the industry and what it may mean for the future.
1. AI in Content Recommendations
Modern streaming platforms employ AI algorithms that continuously analyze viewing patterns, engagement rates, and user preferences. This is meant to provide high-quality content recommendations, but the titles the AI provides don’t always hit the mark. Worse, they can feel intrusive or judgmental. As Emma Beddington of the U.K.’s The Guardian writes, one of her female friends was being recommended content categories by Netflix that included “Grown-Ass Women Living Their Best Lives” and “Sad Girl Summer.” The categories felt reductive, reducing her friend to a stereotype.
However, Netflix also has its moments of progress. Following a viral complaint on Tumblr, Netflix now allows you to remove titles from users’ “Continue Watching” row.
In general, AI-generated content recommendations are helpful. According to Statista, 50% of respondents found the content useful, as opposed to 40% who did not. However, this kind of recommendation feedback loop has the potential to become self-reinforcing, which can put other titles — and, by extension, content creators — at a severe disadvantage from ever being seen.
The Impact on User Engagement
When viewers receive relevant recommendations, they’re more likely to continue using the service. Research from HubSpot suggests that Netflix’s AI-powered recommendations are the key to its low churn rate and high customer retention rate. In 2021, when the study took place, Netflix’s churn rate was only 2.4%, compared to Hulu’s 4.9%. All other streaming platforms averaged a 7% churn rate. However, despite strong performance, Netflix announced that it will no longer be making its subscriber statistics public.
2. AI in Personalized Advertising
With the account information of every subscriber at its fingertips — including viewing history, demographic information, and engagement patterns — AI can offer ads tailor-made for the user. This, of course, can be a great opportunity for revenue for the streaming service and a great way for subscribers to get exposed to new products. However, especially when money and banking information are on the line, it’s incredibly important to make sure you’re using an authorized streaming service with reputable vendors.
Digital piracy sites are on the rise, and they aren’t always as obvious as you might expect. Make sure that you only engage with legal, authorized streaming services to ensure any ads you see are legitimate and not scams or phishing attempts.
Ethical Considerations in AI Advertising
Despite AI-curated ads being hailed as custom or convenient, the collection and use of personal data raises important ethical questions. According to the Pew Research Center, 67% of Americans say they don’t understand how their data is being used, which can be unsettling. What’s more, 70% have little or no trust in companies to use AI responsibly in their products.
Streaming services must find a balance between personalization and privacy. Users need to feel like they have control over their data and understand how it influences their advertising experience.
3. AI and Content Creation
From script analysis to video editing and special effects, AI tools are becoming increasingly prevalent in content creation. In June 2023, Marvel’s “Secret Invasion” went viral for its AI-generated opening title sequence. This clip caused controversy and widespread worry that human artists may be replaced by AI in Hollywood. This heightened scrutiny surrounding the entertainment industry’s treatment of its talent ultimately led to the 2023 SAG-AFTRA Strike less than a month later.
The strike was ultimately resolved on November 9, 2023, with new guidelines about AI usage in content production. These developments emphasize the importance of finding a balance between technological advancement and the creativity that only humans can provide.
4. AI in Enhancing User Experience
Artificial intelligence is transforming how we interact with digital platforms, making them more intuitive, responsive, and inclusive. From optimizing streaming quality to introducing advanced accessibility features, AI is at the forefront of creating seamless experiences for users worldwide.
Streaming Quality
AI systems monitor and adjust video quality in real-time based on various factors, including internet speed, device capabilities, and network conditions. These adjustments help prevent buffering issues and maintain consistent viewing quality, even when demand is high, such as season premieres and sporting events.
Voice and Gesture Control
Advanced AI systems, like those used at Netflix and Hulu, now support natural language processing, allowing viewers to control their streaming experience through voice commands. Other platforms, like Samsung TVs, can even interpret physical movements and utilize gesture recognition in lieu of a remote control.
This technology can make content more accessible and convenient to navigate, but it can also lead to backlash, especially if a provider changes already established controls, something that YouTube is currently experiencing with its touch-based gestures.
Content Accessibility
In 2014, Netflix successfully added subtitles to its entire content library, and in 2023, viewers could customize the style and size of the text to make it more legible. Today, AI-enabled, auto-generated captions have become more accurate across platforms. Similarly, AI-powered translation is helping to break down language barriers, and audio descriptions for visually impaired viewers are constantly improving.
5. AI and User Data Insights
Streaming services use predictive analytics and machine learning models to understand viewer behavior and anticipate trends. These AI insights help platforms make better decisions about the content they want to acquire and their development as a company moving forward.
However, large-scale data collection is unpopular with users. Streaming platforms have to be especially considerate about how and when they gather and use this information or risk losing the public’s trust.
As AI systems collect and analyze more user data, streaming platforms must be transparent about their practices, which isn’t always the case. In September 2024, the Federal Trade Commission (FTC) found that major streaming companies, including Amazon and YouTube, engaged in vast user surveillance while implementing insufficient safeguards for young viewers and teens.
6. Challenges and Opportunities
As Vox pointed out in 2020, just because algorithms are faster, it doesn’t make them fair. They go so far as to say that this so-called “algorithm bias” can be equated to racism or sexism since the data used to train these AI models can be incomplete or unbalanced.
Additionally, Ai-curated content recommendations can lead to feedback loops that limit content discovery, potentially creating echo chambers where viewers see only similar content types. Simply put, allowing for — or even encouraging — content diversity while optimizing for engagement requires careful consideration.
The opportunities, however, are substantial. Convenience, performance, and accessibility for viewers with unique needs are all helped by the implementation of AI technology. With careful oversight and government regulation, we, the users, may experience the best that AI has to offer our streaming experiences while limiting the drawbacks.
Practical Tips for Users
While AI isn’t perfect yet, we at StreamSafely are excited about what it holds for the future and how it can benefit you today — if you know how to use it. Through research and personal trial-and-error on our own devices, our team has our top five tips to make the most out of AI-driven streaming features:
- Review and update your viewing preferences regularly. Make sure you know how to set maturity rates and block titles on Netflix or your platform of choice. Also, be aware of how Netflix tracks engagement and modify your viewing behavior if needed.
- Rate the content you watch to improve recommendation accuracy. The more regularly you give your streaming service provider quantifiable feedback, the more it can put it to good use and improve its recommendations.
- Explore beyond the “Because You Watched” section. Remember, AI algorithms can get you stuck in a loop. Every once in a while, consider breaking away from the recommendations and just typing some letters into the search bar and see what comes up. You may be surprised!
- Check privacy settings periodically. Streaming platforms may change their terms and conditions, and it isn’t always obvious. Take some time to check for any updates and review the privacy policy so that you can make sure your platform still aligns well with your comfort zone in terms of privacy and data collection.
- Use multiple viewing profiles to keep recommendations relevant. If you have the ability to have more than one profile, consider dividing them by mood or content type. This can help you foster different interests without muddying your profile.
Find Safe, Legal Streaming Services With StreamSafely
Keeping up with the ever-changing landscape of streaming, AI, and privacy can be a lot, but it’s always better than the risks of viewing pirating content. Sticking to legitimate streaming sources helps support content creators big and small and provides the revenue needed for the advancement and improvement of AI technology. With StreamSafley, you can find the best streaming platforms that offer high-quality streaming, reliable service, and a continuous commitment to the well-being of their viewers.
Artificial intelligence isn’t going anywhere, and it will be a principal part of streaming as we know it well into the future. With the proper management, these technologies will continue to grow and will create more personalized, accessible, and engaging viewing experiences without limiting diversity or compromising privacy. We at StreamSafely are excited to see what’s in store, and we’ll tell you all about it when it arrives!
