January 12, 2024

Promised video streaming revolution was a lie?

Trend Analysis
Szymon Karbowski
Promised video streaming revolution was a lie?

The popularity of video streaming platforms and the boom of subscribers that we saw during the pandemic is starting to fade. The habits of video streaming platform users around the world are changing. In recent years, viewers have willingly swapped cable TV for streaming platforms. This was mainly due to the wide range of content available on these platforms, but also because the subscription prices were much more attractive, if not competitive, than cable TV subscriptions. Now, users of these services are questioning the continued relevance of subscribing to streaming services.

The Wall Street Journal recently reported that more Americans are unsubscribing from streaming services. In November 2023, 6.3% premium streaming services were unsubscribed, up 5.1% from the same month in 2022. According to the November data, and also citing Antenna data, nearly 25% of major streaming service subscribers have canceled at least three streaming services in the past two years.

If you add up the prices of the most basic plans offered by the five most popular video streaming platforms in the US - Netflix, Amazon Prime, Paramount+, Max and Hulu - their users are now paying around $40 for a monthly subscription to these five services. The Journal reported last November that more expensive plans, with more options and limited advertising, for the aforementioned five most popular video streaming services were going as high as $150 for a monthly subscription.

Many Americans are beginning to feel betrayed by the promises of a true revolution that streaming services were supposed to bring. At a time when streaming platforms are constantly raising their subscription fees, and prices have almost reached the same level as cable TV subscriptions, many families are wondering if it still makes sense to pay so much and, to quote them:  "should they be paying the same as cable”?

Europeans, on the other hand, are starting to become more conscious about controlling their spending and their subscriptions to streaming services. Only two years ago, users had multiple subscriptions to different streaming services at the same time. Now, due to the steady increase, there is a growing tendency to drop multiple streaming platforms and keep only selected subscriptions to the services they actually use.

According to The Journal, however, streaming giants Netflix or Hulu should not feel threatened, as half of the people who abandon their services return to them within two years. The market is changing as viewers' habits change. The revolution in streaming services may have been a bit of an overpromise, but it certainly needs to evolve and follow the needs of its audience. In 2024, the video streaming market will certainly not be boring.

#SzymonKarbowski #StreamVX #videostreaming #Netflix #AmazonPrime #Paramount #Max #Hulu

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