Nov 18, 2021 - Economy & Business

Streaming growth stalls

Data: Company filings; Note: "Paramount+ and Showtime" was formerly "CBS All Access and Showtime"; Chart: Kavya Beheraj/Axios

Subscriber growth slowed last quarter for most of the major streaming services, prompting analysts to consider whether the subscription streamers are prepared to compete globally as the U.S. market saturates.

Why it matters: "Consumers sampled many different SVODs during the height of the pandemic. Churn is a challenge as consumers get back to a new normal routine," said Andrew Hare, SVP of research for global media & entertainment at media research firm Magid.

  • Disney last quarter added just 2.1 million subscribers globally, about 10 million less than the number it added the quarter before that.
  • Netflix's subscriber growth rate has fallen to the single-digit percentage points, after seeing growth rates in the 20% range all of last year.

Be smart: Data from Magid suggests the ceiling on subscription video is lower than many may think. The willingness to pay remains at four services for about $10 per streaming service.

What to watch: Consumer demand for free, ad-supported streaming services remains high, per Magid.

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