While Netflix remains the undisputed leading streaming platform, with a 21% share of the US subscription video on demand (SVOD) market in 2021, GlobalData reports that the giant is showing signs of slowing down.
With more and more competitors coming in, the data and analytics company says that the streaming platform has to not only provide stimulating content but either find an effective niche or compete with other entertainment providers to become an entertainment all-rounder and stand out. will have to partner. Crowd.
The comment below from GlobalData comes just ahead of Netflix’s report on Q4 2021 and after the recent US and Canada price hikes. Netflix increased its prices in the US by $1 and $2, raising the cost of its cheapest plan from $1 to $10 per month. Standard plan increased from $14 per month to $15.50. Netflix’s premium rises to $2 per month, from $18 to $20.
Francesca GregoryGlobalData’s Associate Analyst commented: “We’ve already started seeing Netflix in different regions, with the launch of Netflix Games in November 2021 and a co-streaming partnership with Twitch. Reaching different audiences is a big deal.” I wouldn’t be surprised if the company wants to experiment with more gaming streaming platforms in the future.
“Members look forward to having a more rounded service and seeing large franchises convert into shows. This can, at the same time, leave customers torn between different platforms.”
In addition to the partnership, the content portfolio will be a key determinant of the survival of any streaming services going forward, and strategic content spending will be essential for streaming services to maintain their market position, GlobalData said.
Gregory continued: “Netflix experienced a slow start to 2021, after a light slate of content revealed pandemic production problems. Although fresh content grew subscribers to 214 million in its third quarter, competing platforms are experiencing explosive growth. Disney+ reached 118 million subscribers as of November 2021, just two years after its launch. Bezos also claimed that 175 million Amazon Prime subscribers streamed the content last year. Although subscriber accounting varies across platforms, it is clear that 2022 will be characterized by increased competition.
“As the number of streaming platforms grows, and the market approaches peak fragmentation, SVOD platforms will use content portfolios to differentiate themselves. The trend of spending large amounts of content will continue, with franchises that are likely to attract a loyal fanbase to profit next year.
“This trend is already in motion as Amazon is investing $1 billion on its own” Lord of the Rings The series before one episode has hit the screens of the audience. Meanwhile, SVOD services with smaller budgets will target specific audiences. For example, Paramount+ will aim to serve a long neglected Gen X audience with its content selection. Companies that fail to make a mark in the market will have a limited shelf life in the crowded SVoD market.
The “you can eat whatever” business model has proven popular with streamers so far. However, this means that in order to increase revenue, the streaming platform will have to find new audiences. There will be a series of strategic partnerships between video streaming, gaming and podcast companies. The launch of Netflix games in November 2021 and a co-streaming partnership with Twitch for select content are proof of how this diversification will happen.
Information based on GlobalData’s report: “Technology, Media and Telecommunications (TMT) Prediction 2022 – Thematic Research”