Are you ready? There are some big changes afoot in the media world as big corporations partner up, new players appear on the scene, and consumers demand more innovation and choice. Here are four digital media trends we think you need to keep tabs on this year:

1. Stiff competition: YouTube must strengthen its competitive advantage to maintain its market share in the streaming video space. In addition to rivals like Vimeo, Netflix and Amazon Prime, YouTube faces new competitors including Vessel, a start-up founded by former Hulu CEO Jason Kilar. Facebook and Twitter are also trying to get in on the action, so YouTube, owned by Google, has its work cut out for it.
2. Digital-first: Media companies like the New York Times must embrace the digital-first strategies employed by companies like the Financial Times, as we reported in October, to adapt to younger, more mobile news consumers. Because there are so many free news aggregation sites like Huffington Post and Flipboard to choose from, legacy media companies must maintain their quality content, offer content exclusives, and continually adapt to their subscribers’ needs to remain competitive while appeasing shareholders.
3. Unbundling and cord-cutting: In 2014, companies like CBS and HBO announced stand-alone over-the-top (OTT) services, giving cable subscribers additional options. Earlier this month, Sling TV launched a live TV streaming service for $20/month, giving viewers access to 12 channels including favorites like ESPN, TNT, TBS, the Disney Channel, CNN and ABC Family. Coupled with other major streaming video services, cord cutters can escape pricey cable bills and still see the shows they love. We expect to see more unbundling and cord-cutting in 2015.
4. Adapt or die: With quality data available to better identify consumer habits, companies like Netflix, Spotify, AOL and Magzter must learn what’s working and what isn’t, and adapt quickly to provide innovative solutions to their target audiences. Netflix, for example, is seeing a leveling off of new subscribers in the U.S., so it is branching into international markets. Building on the success of House of Cards and Orange is the New Black, Netflix is offering exclusive content as well, keeping its customers happy. Companies need to be willing to try new things and take risks, or risk losing their audiences altogether.

Insider View:

Even small subscription businesses need to be mindful of these trends. While these examples may cite the “elephants dancing,” if your business is not constantly testing, adapting, or perhaps trying out new, cheaper alternatives to your existing providers (some of whom may be listed above), you run the risk of becoming obsolete. You must stay on top of trends, watch your competitors, measure data about your own customers and invest in R&D to stay a step ahead. And, of course, we recommend that you subscribe to our premium content for benchmark reports, how to guides, and other insider tips!