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Insight of the Day: Streaming Market Is Saturated But Subscriptions Continue to Grow

Market Saturation

  • The U.S. streaming market is nearing saturation, with 95% household penetration and minimal growth.

  • However, average subscriptions per household are increasing (now at 3.9).

Growth Drivers

  • "Subscription stacking" (holding multiple services) is driving growth in the saturated market.

  • Ad-supported tiers are contributing to growth.

Apple TV+ and Peacock Gaining Ground

  • Both services saw significant growth in subscriber share, driven by new releases and sports content.

Amazon Prime Video's Challenges

  • Prime Video experienced subscriber losses in Q1 2024 due to:

  • Post-holiday cancellations (typical pattern)

  • Increased churn from the introduction of ads

  • Despite this, Prime Video's advocacy (Net Promoter Score) has risen among remaining subscribers.

Content Trends

  • Dramas dominate viewership, with 8 out of the top 10 watched titles being dramas.

  • Long-running TV dramas are outperforming original series and films.

  • Genre fatigue is evident, with declining interest in Sci-Fi, Fantasy, Thriller, and Action genres.

Key Takeaways

  • The US streaming market is maturing, making growth challenging.

  • Subscription stacking and ad-supported tiers are becoming crucial for continued expansion.

  • Content preferences are shifting towards established dramas, posing challenges for original content creators.

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