Are the combined impacts of these driving forces likely to be favorable or unfavorable in terms of their effects on competitive intensity and future industry profitability?

Learning Goal: I’m working on a management case study and need an explanation and answer to help me learn.

Hello, I have a case to read and answer 2 questions related to the case. I have attached the case in pdf.

here are two questions need an answer, and i will do a presentation, so i need answers for the case to submit and 2 slide powerpoint to present. each question has a slide. Thank you

The Video Streaming Services industry has boomed as entertainment is delivered to consumers in new and innovative ways. Industry operators provide the infrastructure for customers to watch videos via the internet. Video streaming services generate revenue through paid subscriptions, video-on-demand transactions, and paid advertising. Demand for industry services hinges upon the quality and variety of content available on a streaming platform, in addition to its price and accessibility. The number of consumers that have cut the cable and transitioned to the use of one or more industry services has increased sharply over the five years to 2022. In 2020, more households had Netflix than the leading traditional cable TV service. This shift in consumer preferences has been facilitated by the improving ability of industry operators to provide vast content platforms viewable on-demand due to improving internet speeds and software capabilities.
The industry is anticipated to encounter continued revenue growth over the five years to 2027, albeit at a slower rate. As consumers keep cord-cutting and the number of cable TV subscriptions keeps falling, demand for the industry’s on-demand services will likely rise. This includes live entertainment, which has traditionally been considered exclusive to cable TV. Altogether, industry revenue is anticipated to keep rising an annualized 12.2% to $91.4 billion over the five years to 2027. As industry participation continues to bloom, the industry is likely to become more saturated during the outlook period. As a result, consolidation, in the form of mergers and acquisitions, may become increasingly common over the next five years. (IBISWorld Report).

1. Five-Forces. Based on your analysis of the Video Streaming Industry, what is the most predominant of Porter’s Five Forces? Explain your reasoning and how it affects the industry’s profitability (remember margin of the industry = price to customers – the cost of the incumbents to operate.

2. Driving Forces. The industry is anticipated to grow over the next five years to 2025. As consumers keep cord-cutting and the number of cable TV subscriptions keeps falling, demand for streaming services will likely rise. This includes live entertainment, which has traditionally been considered exclusive to cable TV. Questions: A.) What forces are driving change in this market for streamed entertainment? B.) Are the combined impacts of these driving forces likely to be favorable or unfavorable in terms of their effects on competitive intensity and future industry profitability?

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