Netflix to Grow U.S. Subscribers But Lose Market Share: eMarketer
SVOD Netflix had a weak quarter, but the researchers at eMarketer see it bouncing back: Buoyed by Stranger Things, Orange Is the New Black, and Martin Scorsese movie The Irishman, it should show strong subscriber numbers for the rest of 2019, gaining 7.6% in the U.S. compared to 2018.
That strong U.S. growth will continue for years to come, eMarketer forecasts, with subscribers numbers climbing from 158.8 million in 2019 to 177.5 million in 2023.
This isn't to say all is rosy with Netflix as increased competition—most notably Disney's three-service bundle—will reduce its reach. It was the choice of 90% in the OTT subscription video market in 2014. This year, 87% of that group will sign on, and that will drop to 86.3% in 2023. Don't expect Netflix to change course, however, as eMarketer forecasting analyst Eric Haggstrom says the giant will stick to the strategy that's worked so far: spending more than competitors for new and licensed content, and keeping its price competitive.
Hulu, on the other hand, is seeing its reach increase. Of all OTT subscription customers, 41.5% will have a Hulu account this year. That's shows a year-over-year subscriber growth of 17.5%. Amazon Prime is the second-most popular service, reaching 52.9% of U.S. OTT subscription customers.
Learn the streaming challenges Netflix faced presenting Black Mirror: Bandersnatch, which gave viewers choices and advanced interactive storytelling.
The constant drip, drip, drip of bad news for the SVOD leader has taken its toll, and viewers are leaving en masse. Suddenly the giant doesn't look so powerful.
The Disney+/ESPN+/Hulu triple-play offers something for the whole family, and comes at a budget-conscious price. As opening shots go, it's a howitzer.
Parrot Analytics sees cracks in the Netflix armor: It's still the dominant force in digital original video, but competition is slowly taking its market share.
Despite positive growth, both areas see low monthly active adoption. Most AR use is on Snapchat, while 360-videos and photos make up most VR.