In The US, Netflix Now Represents Just Over a Quarter Of Streaming Services

(CTN News) – Netflix subscriptions are expected to fall by half in 2023, according to data from research firm Antenna. This is a sign that the boom might be over for the industry in its main market.

In the premium subscription video-on-demand category, the growth rate has slowed to 10.1 percent last year from 21.6 percent when the category was introduced in 2022. However, the overall growth of the service has more than doubled over the last four years, indicating a continuous pattern of re-subscriptions.

At the beginning of the streaming boom, companies put a lot of Netflix money into creating swaths of content. This was to attract and retain subscribers. Also, during the Pandemic, customers signed up to services while being homebound due to the inaccessibility of theatres because of the pandemic.

Since then, as a result of the twin Hollywood strikes last year, companies have been looking at ways to reduce content spending while at the same time pushing their ad offerings to increase revenue.

As of the end of 2023, Netflix, Comcast-owned Peacock, and Paramount Global’s Paramount+ were driving the most growth in subscriptions with a total of 242.9 million subscriptions.

Recent years have also seen a shift in the market share of streaming platforms, according to the report. A quarter of the market’s subscriptions are now accounted for by Netflix, which accounted for nearly half of the market in 2019.

In terms of total subscriptions, Paramount+ overtook Disney+. There was a slight increase in market share for Peacock and Netflix and Paramount, while Discovery+, Disney+, and Hulu declined.

According to antenna, streaming is entering a new phase of sobriety.

During the previous stage, the focus was primarily on acquiring a large audience. Now that the largest players possess such scale, they must shift their focus to managing their subscribers.

There were about 30 percent of gross Netflix additions in 2023 that were re-subscribes. This means users who had subscribed to the service previously but cancelled it within the previous 12 months. A quarter of the cancellations were recouped within three months, and more than forty percent within a year, according to the report.

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