9

Premium streaming subscriptions continue to increase despite Netflix's downfall

 2 years ago
source link: https://finance.yahoo.com/news/premium-streaming-subscriptions-continue-increase-140037925.html
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
neoserver,ios ssh client

Premium streaming subscriptions continue to increase despite Netflix's downfall

Lauren Forristal
Sat, May 21, 2022, 11:00 PM·4 min read

If you’ve been following Netflix lately, then you’d know the streamer is on shaky ground at the moment. Antenna data reveals that Netflix saw 3.6 million subscription cancellations in the first quarter of 2022, over one million more than the company experienced in Q1 2021 and Q4 2021. This is a significant indicator that Netflix is inching closer to losing its top spot in the streaming battle.

While Netflix's downfall has raised speculations about if the SVOD (subscription video on demand) industry has peaked and is beginning a downward trend, new Antenna data supports the contrary.

Antenna discovered that U.S. Subscriptions in the Premium SVOD category grew +4.0% quarter over quarter and by +24.7% year over year. The research also shows that there were 37.4 million new gross SVOD customers and a loss of 29.8 million subscribers, leaving a gross of just 7.7 million new subscribers in the first quarter of 2022.

bbd8a31314a2a96c7840e9ecdf551eb7

Image Credits: Antenna

61a4655f9f7f3be94bdffd5e6aec3966

Image Credits: Antenna

The 37.4 number is consistent with the past two quarters yet significantly higher than 2019 (before COVID-19). The growth was largely driven by fledgling services Peacock and Paramount+, which added a combined 6.1 million or more U.S. Subscribers.

In comparison, in 2019, when the market was dominated by Netflix and Hulu (services like Disney+, Peacock and HBO Max didn’t exist yet), there were a total of 10.3 million subscriptions in the year’s first quarter. The massive increase depicts a three-year compound annual growth rate of 54%.

While subscriber growth may be high right now, so are cancellations. There were just under 30 million cancellations in Q1 2022, which is 12% higher than any quarter in history, or 4.5 times the cancel volume seen three years prior, Antenna finds.

The cancellations may not be anything to worry about since the new subscriber additions indicate consumers are bouncing around -- also known as churn and return. Paramount+, Peacock and Disney+ accounted for 51% of all new sign-ups in the quarter. Plus, the three mentioned services made up a large portion of new sign-ups for the churned Q1 2022 Netflix users.


report

Recommend

About Joyk


Aggregate valuable and interesting links.
Joyk means Joy of geeK