Paolo Pescatore’s Post

Netflix continues to lead the streaming market in the all-important metric of churn shown by the always fascinating data from Antenna. After a February bump in lost US subscribers due to discontinued billing via Apple iTunes, Netflix monthly churn returned to an extraordinarily good 1.9% by end-Q1 24. The premium subscription video-on-demand (SVoD) category as a whole ended the quarter at 5%, up from 4.4% at the same point in 2023. Although higher at 7.8%, the churn level for the speciality SVoD category has remained under control, suggesting there is still good demand for the likes of BritBox International, CINEMAX, Crunchyroll, Curiosity Inc., Docurama, MGM+, Shudder, Topic Studios, True Royalty TV, & The Zeus Network. Bundling emerges as a clear strategy to mitigate churn with Antenna reporting that the The Walt Disney Company streaming bundle has churn 2-6 points lower than that for the included services of Hulu, ESPN+ & Disney+. Likewise, the Apple One bundle has a churn rate 6 points lower than Apple TV+ as a stand-alone service. #streaming #streamingwars

More interesting than the business model behind these streaming service combinations (effectively a return to the bundle that was so despised by customers that it led to the proliferation of standalone streaming services in the first place) is whether it leads to actual consolidation at the corporate level. After all, if Disney and Warner Bros Discovery see success selling their content together, wouldn't it just make sense to get married? And while no self-respecting regulator is going to allow a marriage between NBC, Netflix and Apple, a more formal content creation partnership wouldn't be a terrible notion. Scream if you want to go faster, the media M&A tilt-a-whirl may slowly be building up speed.

Streaming now makes up 40.3% of total TV usage in June 2024, the highest share ever recorded by Nielsen’s The Gauge™. With Disney+, Tubi, Netflix, and Max seeing double-digit growth, it's clear that streaming is revolutionizing media consumption. Here’s why this matters: 📈 Record Growth: Streaming surged to a historic 40.3% of TV usage in June. 👶 Youth Appeal: Younger viewers (2-17) are driving significant usage increases, especially on platforms like Netflix and Disney+. 🎬 Top Content: Hits like "Bridgerton" and "House of the Dragon" generated billions of viewing minutes, proving the impact of exclusive content. 📺 Changing Landscape: Broadcast and cable shares are declining as streaming rises. As streaming dominates, how will you adapt your brand and marketing strategies? Are you maximizing your reach on these platforms? The Walt Disney Company, Tubi, Netflix, Warner Bros. Discovery, Paramount+ Prime Video & Amazon MGM Studios, Hulu, Roku, Peacock, YouTube, Pluto TV #Streaming #DigitalMedia #MarketingStrategy #MediaTrends #ContentCreation #Nielsen #EntertainmentIndustry #Future #SocialMedia #Marketing

With huge investment and a proliferation of new streaming options for audiences over the last 4-5 years, Streaming has been the focus for the Media industry, This has led to the highest share of Streaming viewing yet seen in the US. However, it has seen two strong players in Netflix & Youtube followed by a number of major players with smaller shares, despite high investments - Disney+, Amazon Prime, Max & Apple.TV etc. Audience time is finite and time spent consuming media increases gradually but not at the pace of spending on content - so something has to give. Now spending is being limited by all players. Market leaders Netflix will be more opportunistic in their big investments and rely on their huge established catalogue. While others have strategic decisions to make: - Apple TV - invested heavily ($20Bn!) in well reviewed original content but gets a tiny fraction of the Netflix audience. Do they continue or acquire a larger catalogue, more IP? - Disney launched Disney+ to control distribution but in doing so closed their TV assets and forgo licensing revenue. How do they manage streaming costs now? - Other companies such as Warner Bros Discovery/Max & Paramount+ are likely to undergo structural or ownership changes... This is an interesting phase for Streaming after the initial ‘Streaming Wars, - much more responsible spending and strategic decisions get tougher & with more immediate share price impacts. #Streaming

Despite investing billions in original content and strategic partnerships, Apple TV + is finding it tough to compete in the U.S. streaming landscape. Recent data shows that the platform accounts for only 0.2% of total TV viewing time in the country. This small share underscores the fierce competition from established giants like Netflix, Amazon Prime Video, and Disney+. While Apple has launched several critically acclaimed shows and movies, its limited library compared to its rivals may be hindering its ability to attract a larger audience. As Apple continues to focus on high-quality content and expand its offerings, it faces significant challenges in increasing its market share. With such a minor presence in the streaming sector, Apple TV+ has an uphill battle ahead if it hopes to establish itself as a major player in the industry. The coming months will be crucial for the platform as it seeks to enhance its appeal to viewers. #digibble #AppleTV #Streaming #Entertainment #MarketShare #Content #TVViewing

Data from Ampere's Q1 2024 Media Consumer data takes a look at streaming bundles and its potential impact on subscriber churn. Ampere's data shows more than four in ten streaming subscribers report regularly subscribing, canceling and resubscribing. The chart below shows that 15% of either Disney+, Hulu or Max subscribers subscribe to all three and only 10% of Comcast mobile, broadband and TV customers subscribe to Peacock, Netflix and Apple TV+. Bundling provides expanded content opportunities at discounted rates which allows for upselling, ultimately helping mitigate churn. #streaming #streamingvideo #streamingbundles #bundling #netflix #peacock #appletvplus #disneyplus #hulu #max #comcast

Interested in your thoughts on how the ad-supported tiers in streaming services will change your media strategies? The landscape is certainly shifting, and in light of other market changes with online targeting and broadcast media, this introduction could definitely be a bit disruptive. There are so many factors to consider when evaluating this topic, from the cost-of-living crisis to evolving OTT competition to the current state of news in Canada. I’m definitely an inquisitive spectator these days as some big players enter the space. 🧐 Wrote down some preliminary thoughts on the Vovia blog.

The New York Times has become the Streaming Wars historian recently. Focused on lost leadership, fruitless competition, expensive tech distractions and lessons ripping it apart. We've been leaking hints of $50M worth of new tech forthcoming that will aide the transition. Will be interesting for sure. June 22, 2024 - The Future of Streaming (According to the Moguls Figuring It Out) May 26, 2024 - What Happened to Our Ad-Free TV? April 21, 2024 - Americans’ New TV Habit: Subscribe. Watch. Cancel. Repeat. March 1, 2024 - Streaming Prices Keep Going Up. Here’s How to Manage Subscriptions. February 28, 2024 - How the Media Industry Keeps Losing the Future January 27, 2024 - The Joy and Sorrow of Streaming #freecast #nextgenstreaming #streamingwars #nomoreappdiving https://lnkd.in/e4F7teM8

Netflix recently announced that starting in 2025, they would stop reporting subscriber numbers. With bundling being the topic of the moment within the streaming world and given the lead Netflix has in terms of subscribers, it begs the question as to whether they even need to bundle with other platforms. The data below from the Winter MRI-Simmons National Consumer Study attempts to answer this. An estimated 159M or 62% of US adults report subscribing to Netflix. By potentially bundling with either Prime Video or Disney (via their Disney+, Hulu and ESPN+ bundle), they could add a over 20M incremental subscribers. The chart below looks at a similar analysis if bundled with other top platforms. There are endless combinations of bundles to potentially quantify but in this case, partnering with either Peacock or Paramount+ on a custom bundle adds the most incremental subscribers. #streaming #streamingvideo #svod #avod #digitalvideo #netflix #streamingbundles #bundling #primevideo #disneybundle #peacock #paramountplus #max #appletvplus

To be successful your content strategy must be informed by YouTube and Google Search insights and executed across YouTube. #ecommerce #shopify #contentstrategy