Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (2 pm section) at Quinnipiac University. If you're looking for the latest on media industry trends and insightful media analysis, you've come to the right place!
Thursday, January 20, 2022
Media Economics Blog 1, Question 2 (Feb. 1)
Who will be the big winners – and losers – of the so-called “streaming
wars”? Which companies will dominate and which do you think will struggle to
find audiences over the next two years? Limit:
16 responses
I think to be a good streaming service you have to be able to accomplish one or both of the following things: have the nostalgic television shows and movies most people love or provide outstanding originals and stories. The most important thing in terms of streaming is to know your niche. Certain platforms are better than this than others. When Netflix first started streaming, it was the only player in the game. They were able to get hold of all the shows and movies people love and didn’t have to worry about competition yet, because of that, I think no matter what they will always prevail in the streaming wars. Netflix has also proven to adapt to the times and continue to play the game. Netflix still has great shows but competes in that its originals also are desired. Despite all the hiccups during COVID and post-COVID, it has the most subscribers, and I don't think that will ever change. (Friedman) As aforementioned, when it comes to streaming, knowing your niche is important. Other services like HBO Max and Apple TV+ will also be successful because they know their niche and why people subscribe to their service. HBO Max had a rocky road to success, but now it is growing because they know what their subscribers like. Despite it being a higher subscription, people are still willing to subscribe because they provide amazing stories and originals that people want to pay for. (James) I’m subscribed to HBO Max purely for Euphoria and Succession. Those shows tell such important and entertaining stories that I’m okay paying a stiffer price just to watch them. The same can be said for Apple TV+. Shows like Ted Lasso and See are good enough for people to want to subscribe just for them. This is where knowing your audience and knowing your niche is important. I think other services like Hulu and Disney+ will also survive the “streaming wars” because like Netflix, they have ownership of shows that the majority of people like. I think services like Paramount+ and Peacock may struggle to compete. The shows and movies they have aren’t enough to sustain them for a long time. Even with the hits, people don’t seem to find it worth it to subscribe. (Hendrickson) I could live without having those services since the other ones are providing enough good content for me to choose them over Peacock and Paramount. The streaming market is extremely competitive and to compete with the top dogs, you have to be providing something that hasn’t been done before, whether that be originals or gaining the rights to enough popular media. If you aren’t providing something new and original, you have to be providing the best of the older shows, and sometimes this can be hard to accomplish.
Works Cited Friedman, Wayne. “Despite Rivals, Netflix Retains Its Streaming Dominance.” Media Post, 3 January 2022, https://www.mediapost.com/publications/article/369857/despite-rivals-netflix-retains-its-streaming-domi.html. Hendrickson, Josh. “Paramount+ is a Waste of Money and I Shouldn't Have Subscribed.” Review Geek, 14 June 2021, https://www.reviewgeek.com/87517/paramount-plus-is-a-waste-of-money-and-i-shouldnt-have-subscribed/. Accessed 27 January 2022. James, Meg. “After a Turbulent Year, WarnerMedia CEO Jason Kilar Touts HBO Max Gains.” Los Angeles Times, 25 January 2022, https://www.latimes.com/entertainment-arts/business/story/2022-01-05/jason-kilar-how-many-hbo-max-subscribers-2021.
It comes as no surprise that streaming services have taken over the world, creating “streaming wars,” even more so due to the current pandemic. The Los Angeles Times Article by Ryan Faughnder when starts off his article by mentioning that they “asked readers to fill out March Madness-style tournament brackets for what everyone had decided to call the ”Streaming Wars”””. With streaming services such as Netflix, Hulu, HBO Max, Disney+, Paramount+, Etc. There is a wide array of services for people to pick from. HBO Max launched in May 2020 and stumbled out of the gates but has since risen to prominence, having its growth be on par with that of Disney +. It is not easy to stay competitive in the “streaming wars” and costs a lot of money which is why “Disney had said it will spend $33 billion in fiscal 2022, an annual increase of $8 billion, as it tries to boost Disney+, Hulu and ESPN+.” (Faughnder 2022). When I first heard about Disney+ joining forces with Hulu and ESPN + to have one subscription that gives you access to all three, I wondered to myself why this had not been done sooner and why other streaming services don’t team up with one another. When looking at Netflix, Amazon Prime, Disney+, HBO Max, Apple TV+, and Paramount+, these streaming services are for under $10 a month except for HBO Max, which costs $14.99 a month. It makes sense why HBO Max costs so much due to a large amount of content on their service but is it really worth $14.99 a month, or $179.88 for one year? More people would be willing to pay the $14.99 a month if HBO Max combined with a streaming service like Paramount+. HBO Max has seen tremendous growth throughout 2021, generating more subscribers than forecasted. One reason it has seen more subscribers is because “The streaming service also expanded into 46 countries in the past year.” (Sperling 2022). HBO Max used to appeal mainly to an older audience but now also appeals to a younger audience, primarily due to releasing movies at the same time they come out in the theatres. An example is Space Jam: A New Legacy, which was released on HBO Max the same day it came out in theaters, and it attracted a young audience because younger individuals tend to like cartoons.
Although streaming services have sustained success, the amount of success is starting to dwindle down. In their article titled, “Disney makes the trend clear: Growth is slowing for streaming services,” Alex Sherman and Samantha Subin believe that “The slowing growth among most streaming services may suggest pandemic gains are waning as more people return to outside activities and out-of-home work.” (Sherman and Subin 2021). With more and more people getting the Covid vaccination, Covid itself, or both, people are starting to gain some immunity to the virus, which has led to companies making their employees come back into the office. While people were working from home, they didn’t have to commute anywhere but going back to the office could take upwards of 2 hours round trip, sometimes even longer depending on the person. Many people tend to use streaming services late at night, and if they have to wake up early to get ready to go to work, they will no longer stay up late, but if they work from home, they will stay up however late they want as they can get out of bed 5 minutes before work starts if they choose to do so. When comparing the success of the primary streaming services, “Netflix continues to outpace the rest of the streaming world with total global subscribers and clear regional transparency around paying customers and ARPU.” (Sherman and Subin 2011). I think it is pretty clear that the companies that will dominate will be the ones the put the most money into their services.
Works Cited Faughnder, R. (2022, January 11). HBO Max is doing fine. but is streaming actually a good business? Los Angeles Times. Retrieved January 28, 2022, from https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot Shelton, S., Greenberg, R., & Brooks, O. (2021, December 28). Best Streaming Services of 2022 | U.S. news. Retrieved January 28, 2022, from https://www.usnews.com/360-reviews/technology/streaming-services Sherman, A., & Subin, S. (2021, November 11). Disney makes the trend clear: Growth is slowing for streaming services. CNBC. Retrieved January 28, 2022, from https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html Sperling, N. (2022, January 5). HBO Max and HBO hit 73.8 million subscribers, topping company forecasts. The New York Times. Retrieved January 28, 2022, from https://www.nytimes.com/2022/01/05/business/hbo-max-2021-subscribers.html
Kylie Jenkins In the current day and age, streaming services have taken over, and a plethora of companies have hopped on the bandwagon and created their own streaming service. There are different types of streaming services that appeal to many different audiences, some with live TV options, and some with more channel-specific options.
Some of the top streaming services are Hulu, Netflix and Disney Plus. I think these three streaming services will always dominate the market. Netflix has been around for many years, and has a “subscriber base [that] is almost twice as large as Walt Disney’s Disney+ and almost double the size of the U.S. cable market at its peak.”(Kline). Netflix has a massive amount of subscribers, and although the growth of the number of subscribers isn’t rapid, it is still growing. Netflix also spends a lot of money on content to add to its platform each year, which keeps subscribers engaged. Disney Plus is another very popular streaming service, which caters to children and adults alike. Disney Plus will continue to remain on top, especially considering that “production slowdowns and shutdowns have also ended, which will lead to a surge of new content for all of the streaming services”(Sherman), and Disney can add even more content. Hulu is another streaming service that will always win in a “streaming war” because of its live TV component. Hulu subscribers can access both a library of content as well as live TV, which makes it very desirable.
Some of the streaming services that I think will not win a “streaming war” are Apple TV+, Starz, and Amazon Prime. When it comes to numbers, Amazon will always be decent, but content-wise, I think it doesn’t have a very popular library to choose from. HBO Max is another streaming service that I don’t think would win a “streaming war”, although in recent times, popularity has grown due to shows like Euphoria. In an article from BestLife, nine streaming services were rated on a scale of 1-100 for how unsatisfied a customer was, with the higher the number signifying a higher rate of dissatisfaction, and HBO Max was rated 90.03 (Thompson). Some streaming services cater towards a specific group of people, and if that group isn’t very big, it is hard to stand out among the big platforms that cater to many different groups. Kline, Daniel. “Netflix's Problem Isn't Membership. It's What Disney Has That It Doesn't.” TheStreet, TheStreet, 24 Jan. 2022, https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem. Sherman, Alex. “Disney Makes the Trend Clear: Growth Is Slowing for Streaming Services.” CNBC, CNBC, 11 Nov. 2021, https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html. Thompson, Paul. “This Is the Least Popular Streaming Service, According to Data.” Best Life, 12 Mar. 2021, https://bestlifeonline.com/least-popular-streaming-service-data-news/.
Streaming services have been at an all-time high in 2022, and it’s thought that they will only continue to grow. Jumpstarted by the beginning of the global pandemic, we are still seeing a surge of familiar streaming platforms like Netflix and Hulu soar as well as newer companies like Peacock and Paramount+ on the rise to success. But therein lies the question, who will reign champion of these streaming wars?
As the pandemic is settling, we’re seeing people’s free time decrease as they return to work, school, and other in-person activities. With the vast majority of streamers spending less and less time at home, streaming services have hit a halt. Platforms like Disney+ have been experiencing a “slowing growth” (Subin) because while their subscribers are still growing, they are doing it at a much lower rate as opposed to during Corona time. Disney reported “2.1 million subscribers for its fiscal fourth quarter, which ended Oct. 2” and this is “down from 12.6 million added the previous quarter.” (Subin) So while Disney+ is still doing very well, they do not have as much momentum in terms of increasing subscribers.
Now let’s take a company like Netflix. It has existed for a very long time before streaming was really even introduced. And once it was introduced, Netflix was the one to do it, making it the first in the game. From monthly DVDs in your mailbox to its own button on your smart TV remote, Netflix has certainly come a very long way, and it’s not stopping now. But even this streaming giant has fallen victim to slow growth lately, bringing back fewer and fewer subscribers than usual at the end of 2021. With a usual net gain of 8.5 million, Netflix reported “a net gain of 8.28 million subscribers for Q4” which have been “driven by markets outside North America, to reach 221.8 million total worldwide.” (Spangler) Netflix is still very successful nonetheless, but the fact that big companies like them are even being hit by the pandemic’s subsiding says a lot about where streaming services could be heading.
It is also very important to keep in mind the content that these different streaming platforms have and the impact that has on their success. Peacock has been climbing further and further up the ranks since it initially took on The Office after the show retired from Netflix. When Peacock obtained the show, its subscribers skyrocketed. And there’s a method to this madness. Comcast executives recently announced that “Peacock plans to double its content budget to around $3 billion in 2022 alone.” (Keck) While Peacock is still very small compared to giants like Netflix and Disney+, we can’t underestimate its progress. Quality content that people enjoy is key to the survival of streaming services and determines what companies will survive the streaming wars. That is another key reason for the long-lasting success of Disney+. There is such a vast amount of classic, nostalgic, heartwarming Disney content that we just can’t resist, and it is all readily available on Disney+.
I believe that streaming giants like Netflix, Hulu, and Disney+ will survive the streaming wars. I also have hope for Peacock, which I did not originally have before doing research on their content budget strategies. I thought they may fizzle out, but it seems that they are doing quite well and have a steady hold on their place in the battle. It’s hard to know if a company like Paramount+ will come out of the wars winning, or even stay in them, to begin with. It seems like more and more new streaming services are being introduced and it will be interesting to see if they survive the long haul of the streaming wars.
Keck, Catie. “Peacock Reveals Its Strategy for Winning Subscribers: Spend, Spend, Spend.” The Verge, The Verge, 27 Jan. 2022, https://www.theverge.com/2022/1/27/22905079/peacock-24-5-million-subscribers-9-milli on-paid-q4-earnings-2022. Sherman, Alex, and Samantha Subin. “Disney Makes the Trend Clear: Growth Is Slowing for Streaming Services.” CNBC, CNBC, 11 Nov. 2021, https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu -q3-2021.html. Spangler, Todd. “Netflix Falls Short of Q4 Subscriber Target, Stock Tumbles on Weak Forecast.” Variety, Variety, 26 Jan. 2022, https://variety.com/2022/digital/news/netflix-q4-2021-earnings-subscribers-1235158494/#recipient_hashed=62dfc0b27ad1de67d64a0c44fb55f17fe8a7cd610e9d3f50edf2cced899812f7.
Elias King Streaming services has become one of the most popular ways of watching tv shows and movies nowadays. There are so many different streaming services to choose from and it seems that almost every major studio company has a streaming service that people can subscribe to. Netflix was one of the first streaming services to come out after they decided to allow their subscribers to be able to watch shows and movies instantly from home. Netflix at first, mailed DVDs of shows and movies before they allowed their subscribers to watch videos instantly from home. Soon other studio companies created their own streaming services to compete with Netflix. In the “streaming wars”, there will be some winners and losers to it. One streaming company that will be considered a “winner” in the “streaming wars” will be Netflix. According to the Hollywood Reporter, “Netflix had surpassed 200 million subscribers and stocks soared. “I think Netflix will continue to grow as the years go on as Netflix continues to make their own original content for their app. For example, Netflix’s The Crown has won Emmys according to the Hollywood Reporter. Disney has also joined in the “streaming wars” as they created their own streaming service called Disney Plus. There was much hype created for Disney Plus and there were about 10 million subscribers on launch day. Disney Plus has about 95 million subscribers which good since Disney Plus launched about 2 years ago. I think Disney Plus will also continue to gain more subscribers as Disney owns a lot of popular content like the Star Wars franchise, The Simpsons, and Pixar content. Fans of those will continue to subscribe and watch the content. Disney Plus has another huge factor to getting new subscribers and keeping their current subscribers and that is that they own all old Disney content. People, including myself, love watching tv shows that they used to grow up with and they get a nostalgic feeling while watching it. Disney Plus in my opinion will be one of the winners of the “streaming wars”. Another streaming service that is on the rise and personally one of my favorite one to use is HBO Max.
HBO Max is one of the more expensive streaming services to have at a price of 15 dollars a month. According to the Los Angeles times, HBO Max was one of the most downloaded streaming app last year. One of the reasons why I think HBO max was able to gain so many new subscriptions last year was because they added their new movies directly to the app, so people did not have to go to the theatres to see it. HBO Max also has very popular Tv shows like Euphoria, which recently came out with season 2, Succession and White Lotus. I wouldn’t be surprised that HBO Max subscription numbers in the next two years get even closer to Disney Plus subscription numbers. The two streaming services that will struggle to find an audience in the next two years are Peacock and Apple Tv. Peacock is the NBC Universal streaming service that has about 54 million subscribers to it all together but according to Variety, Peacock only has about 9 million paid subscribers. One of the nice things about Peacock is that its free if you are willing to watch ads while using it. Peacock lacks some content and the only popular show on the streaming service is The Office. I think the lack of good content being made will make Peacock harder to reach new people to sign up. According observer.com, Apple Tv has about 20 million subscribers in the US and Canada and 40 million global accounts. Apple Tv just like Peacock lacks some content on the app. Apple Tv does have success with one Tv show called Ted Lasso, but I don’t think it is enough to bring in new clients in the next two years. I think it will be interesting in the next two years what new streaming services will be created and I wonder if Netflix can continue to make great content.
“HBO Max Is Doing Fine. but Is Streaming Actually a Good Business?” Los Angeles Times, Los Angeles Times, 11 Jan. 2022, https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot. Katz, Brandon. “Has Apple TV+ Clawed Its Way out of the Basement?” Observer, Observer, 4 Nov. 2021, https://observer.com/2021/11/apple-tv-plus-subscribers-growth-netflix-disney-plus-amazon-ted-lasso/. Maas, Jennifer. “NBCUniversal Reveals Peacock Has 9 Million Paid Subscribers.” Variety, Variety, 27 Jan. 2022, https://variety.com/2022/streaming/news/peacock-paid-subscribers-9-million-1235164982/. Molla, Rani, and Peter Kafka. “Here's Who Owns Everything in Big Media Today.” Vox, Vox, 23 Jan. 2018, https://www.vox.com/2018/1/23/16905844/media-landscape-verizon-amazon-comcast-disney-fox-relationships-chart. staff, THR. “The High Highs (and Lower Lows) of Hollywood in 2021.” The Hollywood Reporter, The Hollywood Reporter, 3 Jan. 2022, https://www.hollywoodreporter.com/business/business-news/hollywood-2021-highs-and-lower-lows-1235062740/.
When presented with a question regarding streaming services, picking which ones are the best or the worst is a difficult process. To determine who is “winning” or “losing” these streaming wars does not come easy. A way to gauge this is by looking at a services total subscribers and average revenue per user (ARPU) (Sherman & Subin, 2021). When analyzing services this way it is almost certain to say that Netflix is one of the big winners. Netflix has 214 million global paying subscribers and continues to outpace the rest of the streaming world (Sherman & Subin, 2021). They are known as the original and best streaming service currently out there. Netflix provides unlimited streaming of TV shows, movies, comedy specials, and original programming for only one monthly subscription fee (Casey, 2022).
Other top contenders in these streaming wars include Disney+, HBO Max, and Hulu. Alone, Disney+ currently has 118.1 million subscribers (Sherman & Subin, 2021). Disney is a dominant player when it comes to streaming and rightfully so. Disney owns and has the rights to several properties which include Marvel, Star Wars, Pixar, and all seasons of The Simpsons (Casey, 2022). Additionally, Disney+ is an excellent choice for families to subscribe to since there is such a wide range of content available for all ages. HBO Max is the newest streaming service in this bunch and has already expanded globally to 69.4 million subscribers (Sherman & Subin, 2021). HBO Max is a compelling competitor to Netflix, and it has everything HBO had, and then some (Casey, 2022). Casey writes that HBO Max is a winner because of their top-tier movies and award-winning original programming (2022). Hulu is also included in this pack because of their wide range of TV show content and affordability (Casey, 2022). Hulu’s number of subscribers for subscription video on demand is currently 39.7 million (Sherman & Subin, 2021). Hulu is the best streaming service for people who want to keep up with the latest TV shows and not invest in a separate cable subscription (Casey, 2022).
In the next two years there will be struggles in finding an audience for a few streaming services. Services such as Peacock, Paramount+, and Discovery+ are in this mix. There are concerns surrounding these streaming platforms as they are not performing as well when compared to the top services. These specific three are newer services and most prove themselves as being viable competitors against Netflix or even HBO Max (James, 2022). James adds that the cost to compete in streaming is not for the faint of heart (2022). Many companies have been joining in on said streaming wars, but many are not proving as successful as originally thought. Also, many of these “losing” streaming services have not been as transparent as their competitors have. Specifically, Peacock, owned by NBCUniversal, has not released an official figure for ARPU (Sherman & Subin, 2021). People want to subscribe to services that value their customers and not providing company-based data is a huge turnoff.
The companies that will flourish in the streaming wars are the ones that put consumers first. Majority of the reason why Netflix, Disney+, HBO Max, and Hulu are so successful is that they listen to feedback and improve their services to represent the wants and needs of their subscribers. As for the companies currently struggling, Peacock, Paramount+, and Discovery+ will need to enhance their overall services to stand a chance against their biggest competitors in the long run.
Works Cited:
Casey, H. T. (2022, January 14). The Best Streaming Services in 2022. Tom's Guide. Retrieved January 30, 2022, from https://www.tomsguide.com/us/best-streaming-video-services,review-2625.html
James, M. (2022, January 6). After a turbulent year, WarnerMedia CEO Jason Kilar touts HBO max gains. Los Angeles Times. Retrieved January 30, 2022, from https://www.latimes.com/entertainment-arts/business/story/2022-01-05/jason-kilar-how-many-hbo-max-subscribers-2021
Sherman, A., & Subin, S. (2021, November 11). Disney makes the trend clear: Growth is slowing for streaming services. CNBC. Retrieved January 30, 2022, from https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html
Streaming services have skyrocketed within the last couple of years. Since the pandemic, people had to stay home which led them to stream more media online. Some of the top streaming services include Netflix, Disney+, HBO Max which are competitors in the “streaming wars”.
To start, Netflix was one of the first-ever successful streaming services and is still growing its audience. Netflix has a lot of shows on its platform and prides itself off its ‘Netflix Originals’ which are usually successful. Although, some of Netflix's most classic shows have been removed due to their contract ending, some worry that other platforms will be better than Netflix. The Street article written by Daniel Kline, mentions how Netflix and Disney+ are in big competition. They comment on how the growth of Netflix’s audience has slowed down because Disney+ has more to offer. “Every Disney+ show not only serves the company's audience but also brings in new paying subscribers” (Kline 2022). Disney+ has that nostalgic feel for Gen Z which drives more customers. This makes Disney+ more valuable because they offer nostalgic shows and movies that other services don't offer. Disney has rights to a lot of other companies like Marvel, National Geographic and just purchased the rights to air ESPN content. Netflix doesn’t have many big production companies to offer. “Netflix has been releasing roughly 100 to 125 new shows, movies, and comedy specials each quarter. How many of those become hits -- maybe one or two each quarter” (Kline, 2022). Kline has a really good point because yes, Netflix has a lot of movies and shows, but how many are actually big hits and spark conversation compared to Disney+’s multimedia productions? Netflix and Disney+ are both huge streaming services but within the next two years, I predict that Disney+ will surpass Netflix’s users based on the criteria Disney+ is releasing.
HBO Max and Hulu are the two streaming services that are on the lower end of the spectrum regarding audience size. HBO Max is on the come up because of their hit series, ‘Euphoria’. Season two just released a few weeks ago but they are releasing one episode every week to increase subscribers. HBO Max also has the show ‘Friends’ which Netflix just got rid of so that could potentially increase their audience. The Los Angeles Times article written by Ryan Faughnder states, “HBO Max was the most-downloaded streaming video entertainment app last year in the U.S., according to Apptopia, topping Disney+ and Netflix” (Faughnder, 2022). I think this is because of the shows they offer. Although HBO Max’s lowest monthly subscription with no ads is at a whopping $15, I still think they will eventually reach the top. All the streaming services are innovating and growing with their competitors, but I feel like Hulu is static. Netflix and Hulu were released around the same time but Netflix surpassed Hulu by a lot. The article titled, “Why Isn’t Hulu Better?” mentions why Hulu is so behind. One main reason is because Hulu is only offered in the United States and Netflix, HBO Max, and Disney+ are all offered internationally (Smith & Telang, 2019). I think this is a major problem for Hulu because this will only increase their competitor's subscribers.
Overall, I believe the winners of the “streaming wars” within the next two years will be Disney+ and HBO Max because of their nostalgic and successful shows. The losers will be Hulu, Netflix, and any other streaming service that isn’t putting the work in to keep up with their competitors.
Work Cited Faughnder, R. (2022, January 11). HBO Max is doing fine. but is streaming actually a good business? Retrieved January 30, 2022, from https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot Kline, D. (2022, January 24). Netflix's problem isn't membership. it's what Disney has that it doesn't. Retrieved January 30, 2022, from https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem Smith, M., & Telang, R. (2019, April 25). Why isn't hulu better? Retrieved January 30, 2022, from https://hbr.org/2019/04/why-isnt-hulu-better
Alexa Berkowitz In recent years, streaming services have denominated the entertainment industry to the point where some people, including myself, don’t even pay for cable anymore to watch their favorite shows. There are many popular streaming services including but not limited to Netflix, Hulu, Disney plus, HBO Max, Amazon Prime Video, Peacock, and Apple. Prior to my research, if I had to guess what streaming service would be the “winner” of the streaming war, I would have guessed Disney Plus because it is rather new and appeals to a wide demographic. Disney Plus has almost every Disney movie that has ever been produced on its streaming service, capitalizing on the feeling of nostalgia that viewers experience when watching an old movie that they grew up with. The “hype” of Disney Plus started during lockdown, allowing families to reminisce watching some of their favorite classics, however I think that the streaming service will struggle to pull in future subscribers in the upcoming years. During lockdown in 2020, Disney’s streaming service launched and now has a healthy total of 118.1 million subscribers, however the streaming service only had an increase of 2.1 million new subscribers this past quarter, compared to the quarter prior, which showed an increase of just over 12 million new subscriptions (Sherman). This slow growth could be a result of the covid restrictions lessening and people resuming their daily activities outside their homes (Sherman), however other streaming services, such as Netflix, have released more impressive new subscription numbers. According to Ryan Faughnder’s article in the Los Angeles Times, Netflix is currently in the lead out of all the streaming services, with a total of 214 million subscribers, including an increase of 4.4 new subscribers in the latest tally (Faughnder). Netflix was one of the most popular streaming services and has been around for years compared to many of its competitors, such as HBO Max and Disney Plus, which can explain why their subscription totals almost double other streaming services. I believe that Netflix will continue to rank highly in popularity and continue to grow in the future, earning its spot as a “winner” in the so-called “streaming war”.
Aside from Netflix, I think that HBO Max is in a great position to dominate the streaming industry due to the fact they were the most downloaded streaming video entertainment app last year (Faughnder). The streaming service surpassed their initial end of year goal of 70-73 million, ending the year with a total of 73.8 million subscribers (Faughnder). These numbers were impressive following their launch in May of 2020 and the streaming service has become popular through their original series and wide variety of TV shows and movies. HBO Max was also the only streaming service in 2021 to debut movies the same day as theaters at no extra cost. Although this will not be the case moving forward, features such as these set the streaming service apart from its competitors. HBO Max is optimistic when looking to the future, predicting about 120 million to 150 million total subscribers by 2025 (Sherman). Every streaming service has its downfalls and one of HBO’s definite downfalls is the price, $15 a month for all subscribers (Lord). This price is definitely on the more expensive side compared to other services that will typically offer a subscription for around $10, a more affordable option that is available to HBO users if they choose to pick the ad subscription for $5 less (Lord).
Moreover, I believe that HBO Max and Netflix will continue to grow and dominate the streaming industry in the upcoming years and will be so-called “winners” of the “streaming war”.
Faughnder, Ryan. “HBO Max Is Doing Fine. but Is Streaming Actually a Good Business?” Los Angeles Times, Los Angeles Times, 11 Jan. 2022, https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot. Sherman, Alex, and Samantha Subin. “Disney Makes the Trend Clear: Growth Is Slowing for Streaming Services.” CNBC, CNBC, 11 Nov. 2021, https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html. Rayome, Alison DeNisco, et al. “Best Streaming Service of 2022: Netflix, Disney Plus, HBO Max, Prime Video, Hulu, Starz and More.” CNET, CNET, 19 Jan. 2022, https://www.cnet.com/tech/services-and-software/best-streaming-service-of-2022/.
Streaming services, you love them because it's all the buzz right now. There are streaming services that offer their own original movies or tv shows. Or should you pay for shows that you grew up loving. “Remember the good old days when Netflix was the only streaming service any of us paid for? Well , now just about every TV network has its own, and while that means amazing things for our entertainment, paying for several monthly TV subscriptions can really drain the wallet. So, which one really is the best” (Osmanski, S.) Like anything in life there are definitely pro’s and con’s to each streaming platform. The winners of “streaming wars” are definitely Netflix and Disney. As for Netflix their numbers have rapidly gone up. “214 million global paying subscribers (up about 4.4 million from last quarter”.) (sherman4949.) The rate they are going Netflix will get millions of paying subscribers every year. Disney+ has also gained millions since the last quarter. “ Disney+, including Hotstar: 1118.1 million subscribers, $4.12 global ARPU( up about 2.1 million from last quarter”.) (sherman4949.) Disney+ is definitely a top tier streaming service, no wonder why they keep getting millions of users each year. In 2022 Disney+ and Netflix will both spend billions of dollars to add new movies and shows. “ Disney releases a handful of Disney+ exclusive shows and movies every month, which it reinforces by adding content from its deep film and television catalog. The company plans to spend $8 billion on content for its streaming services in 2022, but that number includes sports rights for ESPN+”. (Kline, D.) “Netflix will spend about $17 billion on new shows, comedy specials, and movies for its streaming service in 2022. Disney will spend about $23 billion on movies, TV shows, and other content in 2022, according to its annual report. That number jumps to $33 billion when you factor in sports rights”. (Kline, D.) This proves the point that Netflix and Disney+ are doing the best for their customers to keep them happy. On the other hand there are streaming services that do not have a target market or won’t be super successful. This includes Discovery+ and AMC Networks. “ The majority of Discovery’s 20 million subscribers are from a flagship product Discovery+, though Discovery doesn’t break out a specific figure. Other Discovery streaming products include Eurosport Player and GolfTV”. (sherman4949.) Another new streaming service includes AMC Networks. “AMC Networks did not share subscriber numbers but reaffirmed that it’s on target to reach 9 million paid subscribers by the end of the year,a statement it first made in August. AMC Networks expects to have 20 million to 25 million subscribers by 2025”. (sherman4949.) Subscription services aren’t going away, instead companies are trying to win consumers through various ways. If its through low price, bundling other tv services or no ads. The future of tv is a “streaming war”.
Work cited Kline, D. (2022, January 24). Netflix's problem isn't membership. it's what Disney has that it doesn't. TheStreet. Retrieved January 31, 2022, from https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem
Osmanski, S. (2021, June 27). Netflix versus Disney Plus versus HBO max. Newsweek. Retrieved January 31, 2022, from https://www.newsweek.com/netflix-versus-disney-plus-versus-hbo-max-which-streaming-service-best-1597999
sherman4949. (2021, November 11). Disney makes the trend clear: Growth is slowing for streaming services. CNBC. Retrieved January 31, 2022, from https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html
HBO Max is a subscription-based streaming platform that is owned by AT&T’s Warner Media. The readings from class not only highlight the success HBO Max had within this past year, in 2021, but also explain how the cost of their subscription plan is beneficial for their business. The article by Ryan Faughder reveals some of the prior problems with the streaming platform. He says that the service suffered after launching in May 2020 with a poor marketing plan, a glitchy app, and a high subscription cost (Faughder 1). However, in this past year, the app managed to gain more success. According to Apptopia, HBO Max was the most-downloaded streaming video entertainment app in 2021 which topped Disney+ and Netflix (Faughder 2). This shows that HBO Max was able to combat its prior weaknesses to out beat two of its competitors as the most downloaded streaming app in 2021. In addition to overcoming their prior marketing and technical challenges, Faughder reveals the benefit of HBO Max’s subscription cost. He says its subscription cost could be a benefit for offsetting massive content spending. Meg James reveals, in her article, that the success of HBO Max is with revenue as it costs more than the average streaming plan (2). The importance behind this point is that revenue helps generate an investment budget which enables HBO Max to attain more content for its platform. I agree with James’ argument that their success in revenue will help them dominate the streaming industry as HBO Max is the only subscription model that has a starting plan of $15/month. Therefore, because of HBO Max’s business model and ability to overcome its prior weaknesses in 2020, I argue that HBO Max will be a winner in the streaming wars.
In addition to HBO Max, I believe Disney+ will be a winner in the streaming wars. In his Hollywood Reporter article, George Szalai cites research from the research firm Digital TV Research. Data from this firm suggests that Disney’s streaming service will reach 284.2 million subscribers by 2026, thus taking the top spot from Netflix which is expected to have 270.7 million subscribers by then (Szalai). I expect Disney+ to surpass Netflix in subscription growth based on the content available on the service. Today, Marvel films specifically do well across global audiences because of their international interest and success. Disney+’s greatest strength is that they own several diverse companies such as ESPN, Marvel, A&E, and Touchstone Pictures. By having that ownership, they are able to reach a number of different audiences with diverse interests which enables them to reach even more success in the future.
I predict that Paramount Plus and Netflix will be the losers in the streaming wars. According to “Can Paramount Plus Survive the Competitive Streaming Wars?”, by Sam Persall, the streaming service’s greatest weakness is the way in which it releases content to the public. Persall compares Paramount Plus’ partnership with ViacomCBS to Peacock's partnership with NBCUniversal. Compared to Peacock’s streaming model, Paramount Plus has a cost and does not offer free content (Persall). The streaming platform also will not release Paramount Picture films until 45 days after they are released in theaters (Persall). I think this will hurt their platform as viewers will be impatient to wait for films to be released and likely choose to go to the theater to see the films. HBO Max’s strategy to release new content the same day as it releases in theaters is more reasonable as viewers have the option to view the content in the comfort of their own living space and in a more timely manner. Though Netflix provides its own originals and other popular content on its platform, its growth has been slowing down. As the article by George Szalai, states, Disney+ is expected to surpass Netflix’s subscription growth within the next four years. In “Netflix’s Problem Isn’t Membership. It’s What Disney Has That It Doesn’t.”, it is revealed that Netflix spends more money on original content than Disney+ does (Kline). As the article states, Disney+ does not have the pressure to spend as much money on original content as they already own many iconic forms of film and television. Therefore, I believe it will be harder for Netflix to keep up with Disney+ which will make them a loser in the streaming wars.
Works Cited
Faughdner, Ryan. “HBO Max Is Doing Fine. but Is Streaming Actually a Good Business?” Los Angeles Times, Los Angeles Times, 11 Jan. 2022, https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot.
James, Meg. “After a Turbulent Year, WarnerMedia CEO Jason Kilar Touts HBO Max Gains.” Los Angeles Times, Los Angeles Times, 6 Jan. 2022, https://www.latimes.com/entertainment-arts/business/story/2022-01-05/jason-kilar-how-many-hbo-max-subscribers-2021.
Kline, Daniel. “Netflix's Problem Isn't Membership. It's What Disney Has That It Doesn't.” TheStreet, TheStreet, 24 Jan. 2022, https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem.
Persall, Sam. “Can Paramount plus Survive the Competitive Streaming Wars?” Metaflix, 5 Mar. 2021, https://www.metaflix.com/can-paramount-plus-survive-the-competitive-streaming-wars/.
Szalai, Georg. “Disney+ to Surpass Netflix in 2025, Hit 284m Subscribers in 2026, Analyst Forecasts.” The Hollywood Reporter, The Hollywood Reporter, 13 Oct. 2021, https://www.hollywoodreporter.com/business/business-news/disney-plus-surpass-netflix-2025-analyst-1235029497/.
We can all agree that streaming services have dominated the entertainment industry and have continued to either succeed or struggle against their competitors. While there are a variety of services to choose from, each is different in satisfying their subscribers interests and wants. The streaming service market has grown to be extremely competitive, and some competitors are stronger than others.
Netflix has always been one of the most popular streaming services since it was one of the very first to come out. According to CNBC, Netflix has exceeded the rest of the streaming world due to their total global subscribers and transparency around consumer payments. Compared to last quarter, Netflix has had a 4.4 million increase in total global paying subscribers. In 2022, Netflix is planning to spend around $17 million on new shows, comedy specials, and movies. (Kline, 2022). This will give Netflix a wider variety of genres for their audience to choose from. A huge reason Netflix is so popular is because it is ad-free. This allows their subscribers to enjoy a full show, movie or special with no interruptions. This is a big reason why Netflix is my to-go streaming service. I fully believe that Netflix will become one of the big winners of the “streaming wars”.
Disney+ is another big competitor that has been succeeding in the “streaming wars.” As of this past quarter, Disney has a total of 118.1 million subscribers and $4.12 global ARPU, which was up about 2.1 million from last quarter (Sherman & Subin, 2021). Owning Marvel, Pixar, Star Wars along with original favorites, Disney+ has an advantage that every show it puts on its streaming service becomes globally successful. With its partnership with Verizon, Disney+ allowed a 1-year free subscription which gave a lot of room for new subscribers in the future (Levy, 2021). Disney+ gives a nostalgic feel to this service because of the hundredths of movies and tv shows we grew up with from our childhood. It is another reason why Disney+ is such a popular streaming service.
In comparison to Netflix and Disney+, Apple TV has not revealed any of its numbers since it was first launched in 2019. However, Apple has claimed less than 20 million subscribers in the U.S. and Canada as of July 1. Since the Emmy Sweep of Apple TV’s, Ted Lasso, it was suspected that a big part of the service's success was due to this show. However, “Apple is a trillion-dollar company that doesn’t need Apple TV to be profitable” (Katz, 2021). It shows that Apple isn't as concerned about the number of subscribers they have because they are already successful. This shows me that Apple might not be as successful as their competitors in the future.
Over the next few years, services such as NBC Universal's Peacock, Discovery, and Starz, might be struggling to grow in comparison to other big competitors. These three streaming services have the lowest number of subscribers compared to other services. According to The Motley Fool, Peacock has struggled with engagement, and it doesn't have any clear-cut hit content to draw in subscribers. With only 54 million subscribers, Peacock’s churn rate remained at 18%, meaning consumers are slowly stopping their subscriptions. Discovery has 20 million direct to consumer subscribers, which the majority are from their Discovery+ streaming service. Other Discovery streaming products include Eurosport Player and GolfTV. (Sherman & Subin, 2021). Starz globally only has 30 million subscribers, 18 million of them which are streaming. Starz lost about 600,000 of those subscribers last quarter and has been trying to develop a tracking stock for its performance. Personally, I don't use any of these streaming platforms because I feel others provide more for me. This is a big reason why these platforms are doing as well,
Overall, the streaming market is extremely competitive, and you must really be original to stand out. I believe Netflix, Disney+ and Apple TV will be the winners of the streaming wars. These services provide their subscribers with different types of content at an appropriate rate each month. However, services like Peacock, Discovery and Starz won't do as great. With their limited number of subscribers, it doesn’t seem like these services will ever compare to the top dogs or the “streaming war winner.”
Work Cited: Katz, B. (2021, November 4). Has Apple TV+ clawed its way out of the basement? Observer. Retrieved January 31, 2022, from https://observer.com/2021/11/apple-tv-plus-subscribers-growth-netflix-disney-plus-amazon-ted-lasso/#:~:text=A%20report%20from%20The%20Information,and%2020%20million%20paying%20customers Kline, D. (2022, January 24). Netflix's problem isn't membership. it's what Disney has that it doesn't. TheStreet. Retrieved January 31, 2022, from https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem Levy, A. (2021, October 12). Winners and losers in the streaming wars 2021. The Motley Fool. Retrieved January 31, 2022, from https://www.fool.com/investing/2021/10/12/winners-and-losers-in-the-streaming-wars-2021/ sherman4949. (2021, November 11). Disney makes the trend clear: Growth is slowing for streaming services. CNBC. Retrieved January 31, 2022, from https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html
It is no secret that streaming services have begun to overtake how we view our entertainment media, but there is no feat for them yet as each platform fights to come out on top. Netflix was named the most popular streaming service of 2021 with Amazon Prime and Disney Plus following shortly after. There are unique aspects to each platform that determine their success, but the question is whether they will be able to hold their rank as other streaming services begin to offer new and exciting options. One advantage that they have is that streaming services are able to buy movies and shows from other conglomerates, but they are also able to create original content that isn’t available to watch anywhere else which is a large part in why they are so successful in comparison to older forms of viewing media. Another tactic that streaming services are using to gain viewers is that once they have bought content from other companies such as FOX, Marvel, etc, they are able to create original content based on pre-existing characters and continue storylines that would have never been continued had the content never been bought. Rani Molla and Peter Kafka from Vox report that Amazon is planning to buy MGM “with the hopes of turning brands and characters like Rocky and the Pink Panther into new shows and movies,” (Rani and Kafka, 2021). This would be a huge step for Amazon in the world of streaming and they could possibly surpass Netflix as the most popular streaming service. Netflix originals are a component as to why this service is so successful, but there is a chance that Netflix viewers will start to dwindle due to the cost of the subscription and the fact that in the past year, they have started to show a fewer selection of movies. Hulu is also a great example of how original series can impact their viewers along with the option to add other channels for a higher subscription fee including HBO, Showtime, and Starz. With a collection of universes like Star Wars, Pixar, and Marvel, Disney Plus is likely to gain popularity within the next year. Insider journalist, Kevin Webb, notes that “at $8 a month with no commercials, Disney Plus might offer the best combination of titles, streaming quality, and value,” (Webb, 2022). Being able to bundle with Hulu and ESPN+ is also an advantage that Disney Plus has over other services. However, gaining new subscribers is beginning to dwindle which is something that Disney Plus struggled with this past year. CNBC reports “Disney added just 2 million Disney Plus subscribers after more than 12 million last quarter,” (Sherman and Subin, 2021). Despite this, I believe that Disney Plus will continue to grow in popularity along with Amazon Prime and other services such as HBO Max and Hulu. I believe that newer and less known platforms such as Peacock will have a hard time competing with the other big-name platforms that everyone knows and loves. I also believe that unless Netflix can bring something new and exciting to the table, they will struggle to maintain that number one spot in on-demand streaming.
Works Cited: Molla, Rani, and Peter Kafka. “Here's Who Owns Everything in Big Media Today.” Vox, Vox, 23 Jan. 2018, https://www.vox.com/2018/1/23/16905844/media-landscape-verizon-amazon-comcast-disney-fox-relationships-chart.
Shelton, Sarah, et al. “Best Streaming Services of 2022 | U.S. News.” U.S. News, 28 Dec. 2021, https://www.usnews.com/360-reviews/technology/streaming-services.
Sherman, Alex, and Samantha Subin. “Disney Makes the Trend Clear: Growth Is Slowing for Streaming Services.” CNBC, CNBC, 11 Nov. 2021, https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html.
Webb, Kevin. “The Best Streaming Services You Can Sign up for in 2022.” Business Insider, Business Insider, 3 Jan. 2022, https://www.businessinsider.com/guides/tech/best-streaming-service.
Streaming services have taken over the entertainment industry. Especially ever since the pandemic, streaming services are the new way to watch TV shows and movies. Within the last few years there have been so many new streaming services that have come out and are slowing climbing to the top of the charts. Therefore, we have the term “streaming wars.” With the constant release of new of streaming services, the big question is always who will win and who will lose.
Netflix has always been the original and super popular streaming service for years now. However, at the end of 2021 they saw a lower subscriber count than usual. They are raising the subscription price from $13.99 to $15.49/month. This resulted in high cancellation rates. In the last quarter of the year, they did very successful although the price was risen. Many popular series made a comeback, such as, “The Witcher”, “You”, “Tiger King”, “Cobra Kai”, “Emily in Paris”, and “Money Heist.” However, Netflix’s shares also dropped 14% in the last quarter because of their subscriber drop and other streaming services becoming more popular (Spangler). Many popular shows are also being removed from Netflix which has causes an uproar from many fans. Losing your favorite show on a streaming service could be a reason to cancel your subscription. Because of this and the increase in price, I think Netflix will be one of the streaming services that we see start to struggle to find audiences within the next few years.
Many streaming services had their big break through during 2021, one being HBO Max. They increased 4.4 million subscribers within the third quarter. It was also the most downloaded streaming app in 2021 (Faughnder). At the end of 2021, an HBO Max original show called “Euphoria” went viral online. This definitely helped them gain many subscribers. It can however be hard for streaming services with a situation like this. Many people could be subscribing just for this show, causing a “binge-and-burn.” Making sure that subscribers stick around is very important. Releasing new TV shows and movies are very important to get subscribers’ attention. I think we will be seeing a lot of new HBO Max originals in 2022, and they will be one of the streaming services to dominate.
Looking at the chart titled, “Major U.S. Based Subscription Video Streaming Services”, we can really see which service is climbing to the top. Netflix is currently at 221.8M subscribers with Disney right behind them with 179M subscribers. I think Disney will surpass Netflix in number of subscribers this year. Some of these streaming services also offer deals with other streaming services. Disney includes Disney +, Hulu, and ESPN. This is also what ViacomCBS is doing, including subscriptions to Paramount +, Showtime, and others. This gives them a leg up in the streaming wars. We also saw Peacock have 54M sign ups with over 20M active accounts (Spangler). Because of these numbers I think HBO Max, Disney, and Peacock will be the ones to win the streaming wars this year. I think Netflix will be a looser this year because of all the other competition.
Works Cited: Faughnder, Ryan. “HBO Max Is Doing Fine. but Is Streaming Actually a Good Business?” Los Angeles Times, Los Angeles Times, 11 Jan. 2022, https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot. Spangler, Todd. “Netflix Falls Short of Q4 Subscriber Target, Stock Tumbles on Weak Forecast.” Variety, Variety, 26 Jan. 2022, https://variety.com/2022/digital/news/netflix-q4-2021-earnings-subscribers-1235158494/#recipient_hashed=62dfc0b27ad1de67d64a0c44fb55f17fe8a7cd610e9d3f50edf2cced899812f7.
Vera Helein
ReplyDeleteI think to be a good streaming service you have to be able to accomplish one or both of the following things: have the nostalgic television shows and movies most people love or provide outstanding originals and stories. The most important thing in terms of streaming is to know your niche. Certain platforms are better than this than others.
When Netflix first started streaming, it was the only player in the game. They were able to get hold of all the shows and movies people love and didn’t have to worry about competition yet, because of that, I think no matter what they will always prevail in the streaming wars. Netflix has also proven to adapt to the times and continue to play the game. Netflix still has great shows but competes in that its originals also are desired. Despite all the hiccups during COVID and post-COVID, it has the most subscribers, and I don't think that will ever change. (Friedman)
As aforementioned, when it comes to streaming, knowing your niche is important. Other services like HBO Max and Apple TV+ will also be successful because they know their niche and why people subscribe to their service. HBO Max had a rocky road to success, but now it is growing because they know what their subscribers like. Despite it being a higher subscription, people are still willing to subscribe because they provide amazing stories and originals that people want to pay for. (James) I’m subscribed to HBO Max purely for Euphoria and Succession. Those shows tell such important and entertaining stories that I’m okay paying a stiffer price just to watch them. The same can be said for Apple TV+. Shows like Ted Lasso and See are good enough for people to want to subscribe just for them. This is where knowing your audience and knowing your niche is important.
I think other services like Hulu and Disney+ will also survive the “streaming wars” because like Netflix, they have ownership of shows that the majority of people like. I think services like Paramount+ and Peacock may struggle to compete. The shows and movies they have aren’t enough to sustain them for a long time. Even with the hits, people don’t seem to find it worth it to subscribe. (Hendrickson) I could live without having those services since the other ones are providing enough good content for me to choose them over Peacock and Paramount.
The streaming market is extremely competitive and to compete with the top dogs, you have to be providing something that hasn’t been done before, whether that be originals or gaining the rights to enough popular media. If you aren’t providing something new and original, you have to be providing the best of the older shows, and sometimes this can be hard to accomplish.
Works Cited
Friedman, Wayne. “Despite Rivals, Netflix Retains Its Streaming Dominance.” Media Post, 3 January 2022, https://www.mediapost.com/publications/article/369857/despite-rivals-netflix-retains-its-streaming-domi.html.
Hendrickson, Josh. “Paramount+ is a Waste of Money and I Shouldn't Have Subscribed.” Review Geek, 14 June 2021, https://www.reviewgeek.com/87517/paramount-plus-is-a-waste-of-money-and-i-shouldnt-have-subscribed/. Accessed 27 January 2022.
James, Meg. “After a Turbulent Year, WarnerMedia CEO Jason Kilar Touts HBO Max Gains.” Los Angeles Times, 25 January 2022, https://www.latimes.com/entertainment-arts/business/story/2022-01-05/jason-kilar-how-many-hbo-max-subscribers-2021.
Matthew Miller
ReplyDeleteIt comes as no surprise that streaming services have taken over the world, creating “streaming wars,” even more so due to the current pandemic. The Los Angeles Times Article by Ryan Faughnder when starts off his article by mentioning that they “asked readers to fill out March Madness-style tournament brackets for what everyone had decided to call the ”Streaming Wars”””. With streaming services such as Netflix, Hulu, HBO Max, Disney+, Paramount+, Etc. There is a wide array of services for people to pick from. HBO Max launched in May 2020 and stumbled out of the gates but has since risen to prominence, having its growth be on par with that of Disney +. It is not easy to stay competitive in the “streaming wars” and costs a lot of money which is why “Disney had said it will spend $33 billion in fiscal 2022, an annual increase of $8 billion, as it tries to boost Disney+, Hulu and ESPN+.” (Faughnder 2022). When I first heard about Disney+ joining forces with Hulu and ESPN + to have one subscription that gives you access to all three, I wondered to myself why this had not been done sooner and why other streaming services don’t team up with one another. When looking at Netflix, Amazon Prime, Disney+, HBO Max, Apple TV+, and Paramount+, these streaming services are for under $10 a month except for HBO Max, which costs $14.99 a month. It makes sense why HBO Max costs so much due to a large amount of content on their service but is it really worth $14.99 a month, or $179.88 for one year? More people would be willing to pay the $14.99 a month if HBO Max combined with a streaming service like Paramount+. HBO Max has seen tremendous growth throughout 2021, generating more subscribers than forecasted. One reason it has seen more subscribers is because “The streaming service also expanded into 46 countries in the past year.” (Sperling 2022). HBO Max used to appeal mainly to an older audience but now also appeals to a younger audience, primarily due to releasing movies at the same time they come out in the theatres. An example is Space Jam: A New Legacy, which was released on HBO Max the same day it came out in theaters, and it attracted a young audience because younger individuals tend to like cartoons.
Miller Cont'd
DeleteAlthough streaming services have sustained success, the amount of success is starting to dwindle down. In their article titled, “Disney makes the trend clear: Growth is slowing for streaming services,” Alex Sherman and Samantha Subin believe that “The slowing growth among most streaming services may suggest pandemic gains are waning as more people return to outside activities and out-of-home work.” (Sherman and Subin 2021). With more and more people getting the Covid vaccination, Covid itself, or both, people are starting to gain some immunity to the virus, which has led to companies making their employees come back into the office. While people were working from home, they didn’t have to commute anywhere but going back to the office could take upwards of 2 hours round trip, sometimes even longer depending on the person. Many people tend to use streaming services late at night, and if they have to wake up early to get ready to go to work, they will no longer stay up late, but if they work from home, they will stay up however late they want as they can get out of bed 5 minutes before work starts if they choose to do so. When comparing the success of the primary streaming services, “Netflix continues to outpace the rest of the streaming world with total global subscribers and clear regional transparency around paying customers and ARPU.” (Sherman and Subin 2011). I think it is pretty clear that the companies that will dominate will be the ones the put the most money into their services.
Works Cited
Faughnder, R. (2022, January 11). HBO Max is doing fine. but is streaming actually a good business? Los Angeles Times. Retrieved January 28, 2022, from https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot
Shelton, S., Greenberg, R., & Brooks, O. (2021, December 28). Best Streaming Services of 2022 | U.S. news. Retrieved January 28, 2022, from https://www.usnews.com/360-reviews/technology/streaming-services
Sherman, A., & Subin, S. (2021, November 11). Disney makes the trend clear: Growth is slowing for streaming services. CNBC. Retrieved January 28, 2022, from https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html
Sperling, N. (2022, January 5). HBO Max and HBO hit 73.8 million subscribers, topping company forecasts. The New York Times. Retrieved January 28, 2022, from https://www.nytimes.com/2022/01/05/business/hbo-max-2021-subscribers.html
Kylie Jenkins
ReplyDeleteIn the current day and age, streaming services have taken over, and a plethora of companies have hopped on the bandwagon and created their own streaming service. There are different types of streaming services that appeal to many different audiences, some with live TV options, and some with more channel-specific options.
Some of the top streaming services are Hulu, Netflix and Disney Plus. I think these three streaming services will always dominate the market. Netflix has been around for many years, and has a “subscriber base [that] is almost twice as large as Walt Disney’s Disney+ and almost double the size of the U.S. cable market at its peak.”(Kline). Netflix has a massive amount of subscribers, and although the growth of the number of subscribers isn’t rapid, it is still growing. Netflix also spends a lot of money on content to add to its platform each year, which keeps subscribers engaged. Disney Plus is another very popular streaming service, which caters to children and adults alike. Disney Plus will continue to remain on top, especially considering that “production slowdowns and shutdowns have also ended, which will lead to a surge of new content for all of the streaming services”(Sherman), and Disney can add even more content. Hulu is another streaming service that will always win in a “streaming war” because of its live TV component. Hulu subscribers can access both a library of content as well as live TV, which makes it very desirable.
Some of the streaming services that I think will not win a “streaming war” are Apple TV+, Starz, and Amazon Prime. When it comes to numbers, Amazon will always be decent, but content-wise, I think it doesn’t have a very popular library to choose from. HBO Max is another streaming service that I don’t think would win a “streaming war”, although in recent times, popularity has grown due to shows like Euphoria. In an article from BestLife, nine streaming services were rated on a scale of 1-100 for how unsatisfied a customer was, with the higher the number signifying a higher rate of dissatisfaction, and HBO Max was rated 90.03 (Thompson). Some streaming services cater towards a specific group of people, and if that group isn’t very big, it is hard to stand out among the big platforms that cater to many different groups.
Kline, Daniel. “Netflix's Problem Isn't Membership. It's What Disney Has That It Doesn't.” TheStreet, TheStreet, 24 Jan. 2022, https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem.
Sherman, Alex. “Disney Makes the Trend Clear: Growth Is Slowing for Streaming Services.” CNBC, CNBC, 11 Nov. 2021, https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html.
Thompson, Paul. “This Is the Least Popular Streaming Service, According to Data.” Best Life, 12 Mar. 2021, https://bestlifeonline.com/least-popular-streaming-service-data-news/.
Katie Mone
ReplyDeleteStreaming services have been at an all-time high in 2022, and it’s thought that they will only continue to grow. Jumpstarted by the beginning of the global pandemic, we are still seeing a surge of familiar streaming platforms like Netflix and Hulu soar as well as newer companies like Peacock and Paramount+ on the rise to success. But therein lies the question, who will reign champion of these streaming wars?
As the pandemic is settling, we’re seeing people’s free time decrease as they return to work, school, and other in-person activities. With the vast majority of streamers spending less and less time at home, streaming services have hit a halt. Platforms like Disney+ have been experiencing a “slowing growth” (Subin) because while their subscribers are still growing, they are doing it at a much lower rate as opposed to during Corona time. Disney reported “2.1 million subscribers for its fiscal fourth quarter, which ended Oct. 2” and this is “down from 12.6 million added the previous quarter.” (Subin) So while Disney+ is still doing very well, they do not have as much momentum in terms of increasing subscribers.
Now let’s take a company like Netflix. It has existed for a very long time before streaming was really even introduced. And once it was introduced, Netflix was the one to do it, making it the first in the game. From monthly DVDs in your mailbox to its own button on your smart TV remote, Netflix has certainly come a very long way, and it’s not stopping now. But even this streaming giant has fallen victim to slow growth lately, bringing back fewer and fewer subscribers than usual at the end of 2021. With a usual net gain of 8.5 million, Netflix reported “a net gain of 8.28 million subscribers for Q4” which have been “driven by markets outside North America, to reach 221.8 million total worldwide.” (Spangler) Netflix is still very successful nonetheless, but the fact that big companies like them are even being hit by the pandemic’s subsiding says a lot about where streaming services could be heading.
It is also very important to keep in mind the content that these different streaming platforms have and the impact that has on their success. Peacock has been climbing further and further up the ranks since it initially took on The Office after the show retired from Netflix. When Peacock obtained the show, its subscribers skyrocketed. And there’s a method to this madness. Comcast executives recently announced that “Peacock plans to double its content budget to around $3 billion in 2022 alone.” (Keck) While Peacock is still very small compared to giants like Netflix and Disney+, we can’t underestimate its progress. Quality content that people enjoy is key to the survival of streaming services and determines what companies will survive the streaming wars. That is another key reason for the long-lasting success of Disney+. There is such a vast amount of classic, nostalgic, heartwarming Disney content that we just can’t resist, and it is all readily available on Disney+.
DeleteI believe that streaming giants like Netflix, Hulu, and Disney+ will survive the streaming wars. I also have hope for Peacock, which I did not originally have before doing research on their content budget strategies. I thought they may fizzle out, but it seems that they are doing quite well and have a steady hold on their place in the battle. It’s hard to know if a company like Paramount+ will come out of the wars winning, or even stay in them, to begin with. It seems like more and more new streaming services are being introduced and it will be interesting to see if they survive the long haul of the streaming wars.
Keck, Catie. “Peacock Reveals Its Strategy for Winning Subscribers: Spend, Spend, Spend.”
The Verge, The Verge, 27 Jan. 2022,
https://www.theverge.com/2022/1/27/22905079/peacock-24-5-million-subscribers-9-milli
on-paid-q4-earnings-2022.
Sherman, Alex, and Samantha Subin. “Disney Makes the Trend Clear: Growth Is Slowing for
Streaming Services.” CNBC, CNBC, 11 Nov. 2021,
https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu
-q3-2021.html.
Spangler, Todd. “Netflix Falls Short of Q4 Subscriber Target, Stock Tumbles on Weak Forecast.”
Variety, Variety, 26 Jan. 2022,
https://variety.com/2022/digital/news/netflix-q4-2021-earnings-subscribers-1235158494/#recipient_hashed=62dfc0b27ad1de67d64a0c44fb55f17fe8a7cd610e9d3f50edf2cced899812f7.
Elias King
ReplyDeleteStreaming services has become one of the most popular ways of watching tv shows and movies nowadays. There are so many different streaming services to choose from and it seems that almost every major studio company has a streaming service that people can subscribe to. Netflix was one of the first streaming services to come out after they decided to allow their subscribers to be able to watch shows and movies instantly from home. Netflix at first, mailed DVDs of shows and movies before they allowed their subscribers to watch videos instantly from home. Soon other studio companies created their own streaming services to compete with Netflix. In the “streaming wars”, there will be some winners and losers to it. One streaming company that will be considered a “winner” in the “streaming wars” will be Netflix. According to the Hollywood Reporter, “Netflix had surpassed 200 million subscribers and stocks soared. “I think Netflix will continue to grow as the years go on as Netflix continues to make their own original content for their app. For example, Netflix’s The Crown has won Emmys according to the Hollywood Reporter. Disney has also joined in the “streaming wars” as they created their own streaming service called Disney Plus. There was much hype created for Disney Plus and there were about 10 million subscribers on launch day. Disney Plus has about 95 million subscribers which good since Disney Plus launched about 2 years ago. I think Disney Plus will also continue to gain more subscribers as Disney owns a lot of popular content like the Star Wars franchise, The Simpsons, and Pixar content. Fans of those will continue to subscribe and watch the content. Disney Plus has another huge factor to getting new subscribers and keeping their current subscribers and that is that they own all old Disney content. People, including myself, love watching tv shows that they used to grow up with and they get a nostalgic feeling while watching it. Disney Plus in my opinion will be one of the winners of the “streaming wars”. Another streaming service that is on the rise and personally one of my favorite one to use is HBO Max.
HBO Max is one of the more expensive streaming services to have at a price of 15 dollars a month. According to the Los Angeles times, HBO Max was one of the most downloaded streaming app last year. One of the reasons why I think HBO max was able to gain so many new subscriptions last year was because they added their new movies directly to the app, so people did not have to go to the theatres to see it. HBO Max also has very popular Tv shows like Euphoria, which recently came out with season 2, Succession and White Lotus. I wouldn’t be surprised that HBO Max subscription numbers in the next two years get even closer to Disney Plus subscription numbers. The two streaming services that will struggle to find an audience in the next two years are Peacock and Apple Tv. Peacock is the NBC Universal streaming service that has about 54 million subscribers to it all together but according to Variety, Peacock only has about 9 million paid subscribers. One of the nice things about Peacock is that its free if you are willing to watch ads while using it. Peacock lacks some content and the only popular show on the streaming service is The Office. I think the lack of good content being made will make Peacock harder to reach new people to sign up. According observer.com, Apple Tv has about 20 million subscribers in the US and Canada and 40 million global accounts. Apple Tv just like Peacock lacks some content on the app. Apple Tv does have success with one Tv show called Ted Lasso, but I don’t think it is enough to bring in new clients in the next two years. I think it will be interesting in the next two years what new streaming services will be created and I wonder if Netflix can continue to make great content.
Delete“HBO Max Is Doing Fine. but Is Streaming Actually a Good Business?” Los Angeles Times, Los Angeles Times, 11 Jan. 2022, https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot.
Katz, Brandon. “Has Apple TV+ Clawed Its Way out of the Basement?” Observer, Observer, 4 Nov. 2021, https://observer.com/2021/11/apple-tv-plus-subscribers-growth-netflix-disney-plus-amazon-ted-lasso/.
Maas, Jennifer. “NBCUniversal Reveals Peacock Has 9 Million Paid Subscribers.” Variety, Variety, 27 Jan. 2022, https://variety.com/2022/streaming/news/peacock-paid-subscribers-9-million-1235164982/.
Molla, Rani, and Peter Kafka. “Here's Who Owns Everything in Big Media Today.” Vox, Vox, 23 Jan. 2018, https://www.vox.com/2018/1/23/16905844/media-landscape-verizon-amazon-comcast-disney-fox-relationships-chart.
staff, THR. “The High Highs (and Lower Lows) of Hollywood in 2021.” The Hollywood Reporter, The Hollywood Reporter, 3 Jan. 2022, https://www.hollywoodreporter.com/business/business-news/hollywood-2021-highs-and-lower-lows-1235062740/.
Madison Bopp
ReplyDeleteWhen presented with a question regarding streaming services, picking which ones are the best or the worst is a difficult process. To determine who is “winning” or “losing” these streaming wars does not come easy. A way to gauge this is by looking at a services total subscribers and average revenue per user (ARPU) (Sherman & Subin, 2021). When analyzing services this way it is almost certain to say that Netflix is one of the big winners. Netflix has 214 million global paying subscribers and continues to outpace the rest of the streaming world (Sherman & Subin, 2021). They are known as the original and best streaming service currently out there. Netflix provides unlimited streaming of TV shows, movies, comedy specials, and original programming for only one monthly subscription fee (Casey, 2022).
Other top contenders in these streaming wars include Disney+, HBO Max, and Hulu. Alone, Disney+ currently has 118.1 million subscribers (Sherman & Subin, 2021). Disney is a dominant player when it comes to streaming and rightfully so. Disney owns and has the rights to several properties which include Marvel, Star Wars, Pixar, and all seasons of The Simpsons (Casey, 2022). Additionally, Disney+ is an excellent choice for families to subscribe to since there is such a wide range of content available for all ages. HBO Max is the newest streaming service in this bunch and has already expanded globally to 69.4 million subscribers (Sherman & Subin, 2021). HBO Max is a compelling competitor to Netflix, and it has everything HBO had, and then some (Casey, 2022). Casey writes that HBO Max is a winner because of their top-tier movies and award-winning original programming (2022). Hulu is also included in this pack because of their wide range of TV show content and affordability (Casey, 2022). Hulu’s number of subscribers for subscription video on demand is currently 39.7 million (Sherman & Subin, 2021). Hulu is the best streaming service for people who want to keep up with the latest TV shows and not invest in a separate cable subscription (Casey, 2022).
In the next two years there will be struggles in finding an audience for a few streaming services. Services such as Peacock, Paramount+, and Discovery+ are in this mix. There are concerns surrounding these streaming platforms as they are not performing as well when compared to the top services. These specific three are newer services and most prove themselves as being viable competitors against Netflix or even HBO Max (James, 2022). James adds that the cost to compete in streaming is not for the faint of heart (2022). Many companies have been joining in on said streaming wars, but many are not proving as successful as originally thought. Also, many of these “losing” streaming services have not been as transparent as their competitors have. Specifically, Peacock, owned by NBCUniversal, has not released an official figure for ARPU (Sherman & Subin, 2021). People want to subscribe to services that value their customers and not providing company-based data is a huge turnoff.
DeleteThe companies that will flourish in the streaming wars are the ones that put consumers first. Majority of the reason why Netflix, Disney+, HBO Max, and Hulu are so successful is that they listen to feedback and improve their services to represent the wants and needs of their subscribers. As for the companies currently struggling, Peacock, Paramount+, and Discovery+ will need to enhance their overall services to stand a chance against their biggest competitors in the long run.
Works Cited:
Casey, H. T. (2022, January 14). The Best Streaming Services in 2022. Tom's Guide. Retrieved January 30, 2022, from https://www.tomsguide.com/us/best-streaming-video-services,review-2625.html
James, M. (2022, January 6). After a turbulent year, WarnerMedia CEO Jason Kilar touts HBO max gains. Los Angeles Times. Retrieved January 30, 2022, from https://www.latimes.com/entertainment-arts/business/story/2022-01-05/jason-kilar-how-many-hbo-max-subscribers-2021
Sherman, A., & Subin, S. (2021, November 11). Disney makes the trend clear: Growth is slowing for streaming services. CNBC. Retrieved January 30, 2022, from https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html
Elisa Leone
ReplyDeleteStreaming services have skyrocketed within the last couple of years. Since the pandemic, people had to stay home which led them to stream more media online. Some of the top streaming services include Netflix, Disney+, HBO Max which are competitors in the “streaming wars”.
To start, Netflix was one of the first-ever successful streaming services and is still growing its audience. Netflix has a lot of shows on its platform and prides itself off its ‘Netflix Originals’ which are usually successful. Although, some of Netflix's most classic shows have been removed due to their contract ending, some worry that other platforms will be better than Netflix. The Street article written by Daniel Kline, mentions how Netflix and Disney+ are in big competition. They comment on how the growth of Netflix’s audience has slowed down because Disney+ has more to offer. “Every Disney+ show not only serves the company's audience but also brings in new paying subscribers” (Kline 2022). Disney+ has that nostalgic feel for Gen Z which drives more customers. This makes Disney+ more valuable because they offer nostalgic shows and movies that other services don't offer. Disney has rights to a lot of other companies like Marvel, National Geographic and just purchased the rights to air ESPN content. Netflix doesn’t have many big production companies to offer. “Netflix has been releasing roughly 100 to 125 new shows, movies, and comedy specials each quarter. How many of those become hits -- maybe one or two each quarter” (Kline, 2022). Kline has a really good point because yes, Netflix has a lot of movies and shows, but how many are actually big hits and spark conversation compared to Disney+’s multimedia productions? Netflix and Disney+ are both huge streaming services but within the next two years, I predict that Disney+ will surpass Netflix’s users based on the criteria Disney+ is releasing.
Elisa Leone Pt 2
DeleteHBO Max and Hulu are the two streaming services that are on the lower end of the spectrum regarding audience size. HBO Max is on the come up because of their hit series, ‘Euphoria’. Season two just released a few weeks ago but they are releasing one episode every week to increase subscribers. HBO Max also has the show ‘Friends’ which Netflix just got rid of so that could potentially increase their audience. The Los Angeles Times article written by Ryan Faughnder states, “HBO Max was the most-downloaded streaming video entertainment app last year in the U.S., according to Apptopia, topping Disney+ and Netflix” (Faughnder, 2022). I think this is because of the shows they offer. Although HBO Max’s lowest monthly subscription with no ads is at a whopping $15, I still think they will eventually reach the top. All the streaming services are innovating and growing with their competitors, but I feel like Hulu is static. Netflix and Hulu were released around the same time but Netflix surpassed Hulu by a lot. The article titled, “Why Isn’t Hulu Better?” mentions why Hulu is so behind. One main reason is because Hulu is only offered in the United States and Netflix, HBO Max, and Disney+ are all offered internationally (Smith & Telang, 2019). I think this is a major problem for Hulu because this will only increase their competitor's subscribers.
Overall, I believe the winners of the “streaming wars” within the next two years will be Disney+ and HBO Max because of their nostalgic and successful shows. The losers will be Hulu, Netflix, and any other streaming service that isn’t putting the work in to keep up with their competitors.
Work Cited
Faughnder, R. (2022, January 11). HBO Max is doing fine. but is streaming actually a good business? Retrieved January 30, 2022, from https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot
Kline, D. (2022, January 24). Netflix's problem isn't membership. it's what Disney has that it doesn't. Retrieved January 30, 2022, from https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem
Smith, M., & Telang, R. (2019, April 25). Why isn't hulu better? Retrieved January 30, 2022, from https://hbr.org/2019/04/why-isnt-hulu-better
This comment has been removed by the author.
ReplyDeleteAlexa Berkowitz
ReplyDeleteIn recent years, streaming services have denominated the entertainment industry to the point where some people, including myself, don’t even pay for cable anymore to watch their favorite shows. There are many popular streaming services including but not limited to Netflix, Hulu, Disney plus, HBO Max, Amazon Prime Video, Peacock, and Apple. Prior to my research, if I had to guess what streaming service would be the “winner” of the streaming war, I would have guessed Disney Plus because it is rather new and appeals to a wide demographic. Disney Plus has almost every Disney movie that has ever been produced on its streaming service, capitalizing on the feeling of nostalgia that viewers experience when watching an old movie that they grew up with. The “hype” of Disney Plus started during lockdown, allowing families to reminisce watching some of their favorite classics, however I think that the streaming service will struggle to pull in future subscribers in the upcoming years. During lockdown in 2020, Disney’s streaming service launched and now has a healthy total of 118.1 million subscribers, however the streaming service only had an increase of 2.1 million new subscribers this past quarter, compared to the quarter prior, which showed an increase of just over 12 million new subscriptions (Sherman). This slow growth could be a result of the covid restrictions lessening and people resuming their daily activities outside their homes (Sherman), however other streaming services, such as Netflix, have released more impressive new subscription numbers. According to Ryan Faughnder’s article in the Los Angeles Times, Netflix is currently in the lead out of all the streaming services, with a total of 214 million subscribers, including an increase of 4.4 new subscribers in the latest tally (Faughnder). Netflix was one of the most popular streaming services and has been around for years compared to many of its competitors, such as HBO Max and Disney Plus, which can explain why their subscription totals almost double other streaming services. I believe that Netflix will continue to rank highly in popularity and continue to grow in the future, earning its spot as a “winner” in the so-called “streaming war”.
Aside from Netflix, I think that HBO Max is in a great position to dominate the streaming industry due to the fact they were the most downloaded streaming video entertainment app last year (Faughnder). The streaming service surpassed their initial end of year goal of 70-73 million, ending the year with a total of 73.8 million subscribers (Faughnder). These numbers were impressive following their launch in May of 2020 and the streaming service has become popular through their original series and wide variety of TV shows and movies. HBO Max was also the only streaming service in 2021 to debut movies the same day as theaters at no extra cost. Although this will not be the case moving forward, features such as these set the streaming service apart from its competitors. HBO Max is optimistic when looking to the future, predicting about 120 million to 150 million total subscribers by 2025 (Sherman). Every streaming service has its downfalls and one of HBO’s definite downfalls is the price, $15 a month for all subscribers (Lord). This price is definitely on the more expensive side compared to other services that will typically offer a subscription for around $10, a more affordable option that is available to HBO users if they choose to pick the ad subscription for $5 less (Lord).
DeleteMoreover, I believe that HBO Max and Netflix will continue to grow and dominate the streaming industry in the upcoming years and will be so-called “winners” of the “streaming war”.
Faughnder, Ryan. “HBO Max Is Doing Fine. but Is Streaming Actually a Good Business?” Los Angeles Times, Los Angeles Times, 11 Jan. 2022, https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot.
Sherman, Alex, and Samantha Subin. “Disney Makes the Trend Clear: Growth Is Slowing for Streaming Services.” CNBC, CNBC, 11 Nov. 2021, https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html.
Rayome, Alison DeNisco, et al. “Best Streaming Service of 2022: Netflix, Disney Plus, HBO Max, Prime Video, Hulu, Starz and More.” CNET, CNET, 19 Jan. 2022, https://www.cnet.com/tech/services-and-software/best-streaming-service-of-2022/.
ReplyDeleteAbigail Rica
Streaming services, you love them because it's all the buzz right now. There are streaming services that offer their own original movies or tv shows. Or should you pay for shows that you grew up loving. “Remember the good old days when Netflix was the only streaming service any of us paid for? Well , now just about every TV network has its own, and while that means amazing things for our entertainment, paying for several monthly TV subscriptions can really drain the wallet. So, which one really is the best” (Osmanski, S.) Like anything in life there are definitely pro’s and con’s to each streaming platform. The winners of “streaming wars” are definitely Netflix and Disney. As for Netflix their numbers have rapidly gone up. “214 million global paying subscribers (up about 4.4 million from last quarter”.) (sherman4949.) The rate they are going Netflix will get millions of paying subscribers every year. Disney+ has also gained millions since the last quarter. “ Disney+, including Hotstar: 1118.1 million subscribers, $4.12 global ARPU( up about 2.1 million from last quarter”.) (sherman4949.) Disney+ is definitely a top tier streaming service, no wonder why they keep getting millions of users each year.
In 2022 Disney+ and Netflix will both spend billions of dollars to add new movies and shows. “ Disney releases a handful of Disney+ exclusive shows and movies every month, which it reinforces by adding content from its deep film and television catalog. The company plans to spend $8 billion on content for its streaming services in 2022, but that number includes sports rights for ESPN+”. (Kline, D.) “Netflix will spend about $17 billion on new shows, comedy specials, and movies for its streaming service in 2022. Disney will spend about $23 billion on movies, TV shows, and other content in 2022, according to its annual report. That number jumps to $33 billion when you factor in sports rights”. (Kline, D.) This proves the point that Netflix and Disney+ are doing the best for their customers to keep them happy.
On the other hand there are streaming services that do not have a target market or won’t be super successful. This includes Discovery+ and AMC Networks. “ The majority of Discovery’s 20 million subscribers are from a flagship product Discovery+, though Discovery doesn’t break out a specific figure. Other Discovery streaming products include Eurosport Player and GolfTV”. (sherman4949.) Another new streaming service includes AMC Networks. “AMC Networks did not share subscriber numbers but reaffirmed that it’s on target to reach 9 million paid subscribers by the end of the year,a statement it first made in August. AMC Networks expects to have 20 million to 25 million subscribers by 2025”. (sherman4949.) Subscription services aren’t going away, instead companies are trying to win consumers through various ways. If its through low price, bundling other tv services or no ads. The future of tv is a “streaming war”.
Work cited
Kline, D. (2022, January 24). Netflix's problem isn't membership. it's what Disney has that it doesn't. TheStreet. Retrieved January 31, 2022, from https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem
Osmanski, S. (2021, June 27). Netflix versus Disney Plus versus HBO max. Newsweek. Retrieved January 31, 2022, from https://www.newsweek.com/netflix-versus-disney-plus-versus-hbo-max-which-streaming-service-best-1597999
sherman4949. (2021, November 11). Disney makes the trend clear: Growth is slowing for streaming services. CNBC. Retrieved January 31, 2022, from https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html
Glenna Gobeil
ReplyDeleteHBO Max is a subscription-based streaming platform that is owned by AT&T’s Warner Media. The readings from class not only highlight the success HBO Max had within this past year, in 2021, but also explain how the cost of their subscription plan is beneficial for their business. The article by Ryan Faughder reveals some of the prior problems with the streaming platform. He says that the service suffered after launching in May 2020 with a poor marketing plan, a glitchy app, and a high subscription cost (Faughder 1). However, in this past year, the app managed to gain more success. According to Apptopia, HBO Max was the most-downloaded streaming video entertainment app in 2021 which topped Disney+ and Netflix (Faughder 2). This shows that HBO Max was able to combat its prior weaknesses to out beat two of its competitors as the most downloaded streaming app in 2021. In addition to overcoming their prior marketing and technical challenges, Faughder reveals the benefit of HBO Max’s subscription cost. He says its subscription cost could be a benefit for offsetting massive content spending. Meg James reveals, in her article, that the success of HBO Max is with revenue as it costs more than the average streaming plan (2). The importance behind this point is that revenue helps generate an investment budget which enables HBO Max to attain more content for its platform. I agree with James’ argument that their success in revenue will help them dominate the streaming industry as HBO Max is the only subscription model that has a starting plan of $15/month. Therefore, because of HBO Max’s business model and ability to overcome its prior weaknesses in 2020, I argue that HBO Max will be a winner in the streaming wars.
In addition to HBO Max, I believe Disney+ will be a winner in the streaming wars. In his Hollywood Reporter article, George Szalai cites research from the research firm Digital TV Research. Data from this firm suggests that Disney’s streaming service will reach 284.2 million subscribers by 2026, thus taking the top spot from Netflix which is expected to have 270.7 million subscribers by then (Szalai). I expect Disney+ to surpass Netflix in subscription growth based on the content available on the service. Today, Marvel films specifically do well across global audiences because of their international interest and success. Disney+’s greatest strength is that they own several diverse companies such as ESPN, Marvel, A&E, and Touchstone Pictures. By having that ownership, they are able to reach a number of different audiences with diverse interests which enables them to reach even more success in the future.
I predict that Paramount Plus and Netflix will be the losers in the streaming wars. According to “Can Paramount Plus Survive the Competitive Streaming Wars?”, by Sam Persall, the streaming service’s greatest weakness is the way in which it releases content to the public. Persall compares Paramount Plus’ partnership with ViacomCBS to Peacock's partnership with NBCUniversal. Compared to Peacock’s streaming model, Paramount Plus has a cost and does not offer free content (Persall). The streaming platform also will not release Paramount Picture films until 45 days after they are released in theaters (Persall). I think this will hurt their platform as viewers will be impatient to wait for films to be released and likely choose to go to the theater to see the films. HBO Max’s strategy to release new content the same day as it releases in theaters is more reasonable as viewers have the option to view the content in the comfort of their own living space and in a more timely manner. Though Netflix provides its own originals and other popular content on its platform, its growth has been slowing down. As the article by George Szalai, states, Disney+ is expected to surpass Netflix’s subscription growth within the next four years. In “Netflix’s Problem Isn’t Membership. It’s What Disney Has That It Doesn’t.”, it is revealed that Netflix spends more money on original content than Disney+ does (Kline). As the article states, Disney+ does not have the pressure to spend as much money on original content as they already own many iconic forms of film and television. Therefore, I believe it will be harder for Netflix to keep up with Disney+ which will make them a loser in the streaming wars.
DeleteWorks Cited
Faughdner, Ryan. “HBO Max Is Doing Fine. but Is Streaming Actually a Good Business?” Los Angeles Times, Los Angeles Times, 11 Jan. 2022, https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot.
James, Meg. “After a Turbulent Year, WarnerMedia CEO Jason Kilar Touts HBO Max Gains.” Los Angeles Times, Los Angeles Times, 6 Jan. 2022, https://www.latimes.com/entertainment-arts/business/story/2022-01-05/jason-kilar-how-many-hbo-max-subscribers-2021.
Kline, Daniel. “Netflix's Problem Isn't Membership. It's What Disney Has That It Doesn't.” TheStreet, TheStreet, 24 Jan. 2022, https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem.
Persall, Sam. “Can Paramount plus Survive the Competitive Streaming Wars?” Metaflix, 5 Mar. 2021, https://www.metaflix.com/can-paramount-plus-survive-the-competitive-streaming-wars/.
Szalai, Georg. “Disney+ to Surpass Netflix in 2025, Hit 284m Subscribers in 2026, Analyst Forecasts.” The Hollywood Reporter, The Hollywood Reporter, 13 Oct. 2021, https://www.hollywoodreporter.com/business/business-news/disney-plus-surpass-netflix-2025-analyst-1235029497/.
We can all agree that streaming services have dominated the entertainment industry and have continued to either succeed or struggle against their competitors. While there are a variety of services to choose from, each is different in satisfying their subscribers interests and wants. The streaming service market has grown to be extremely competitive, and some competitors are stronger than others.
ReplyDeleteNetflix has always been one of the most popular streaming services since it was one of the very first to come out. According to CNBC, Netflix has exceeded the rest of the streaming world due to their total global subscribers and transparency around consumer payments. Compared to last quarter, Netflix has had a 4.4 million increase in total global paying subscribers. In 2022, Netflix is planning to spend around $17 million on new shows, comedy specials, and movies. (Kline, 2022). This will give Netflix a wider variety of genres for their audience to choose from. A huge reason Netflix is so popular is because it is ad-free. This allows their subscribers to enjoy a full show, movie or special with no interruptions. This is a big reason why Netflix is my to-go streaming service. I fully believe that Netflix will become one of the big winners of the “streaming wars”.
Disney+ is another big competitor that has been succeeding in the “streaming wars.” As of this past quarter, Disney has a total of 118.1 million subscribers and $4.12 global ARPU, which was up about 2.1 million from last quarter (Sherman & Subin, 2021). Owning Marvel, Pixar, Star Wars along with original favorites, Disney+ has an advantage that every show it puts on its streaming service becomes globally successful. With its partnership with Verizon, Disney+ allowed a 1-year free subscription which gave a lot of room for new subscribers in the future (Levy, 2021). Disney+ gives a nostalgic feel to this service because of the hundredths of movies and tv shows we grew up with from our childhood. It is another reason why Disney+ is such a popular streaming service.
In comparison to Netflix and Disney+, Apple TV has not revealed any of its numbers since it was first launched in 2019. However, Apple has claimed less than 20 million subscribers in the U.S. and Canada as of July 1. Since the Emmy Sweep of Apple TV’s, Ted Lasso, it was suspected that a big part of the service's success was due to this show. However, “Apple is a trillion-dollar company that doesn’t need Apple TV to be profitable” (Katz, 2021). It shows that Apple isn't as concerned about the number of subscribers they have because they are already successful. This shows me that Apple might not be as successful as their competitors in the future.
DeleteOver the next few years, services such as NBC Universal's Peacock, Discovery, and Starz, might be struggling to grow in comparison to other big competitors. These three streaming services have the lowest number of subscribers compared to other services. According to The Motley Fool, Peacock has struggled with engagement, and it doesn't have any clear-cut hit content to draw in subscribers. With only 54 million subscribers, Peacock’s churn rate remained at 18%, meaning consumers are slowly stopping their subscriptions. Discovery has 20 million direct to consumer subscribers, which the majority are from their Discovery+ streaming service. Other Discovery streaming products include Eurosport Player and GolfTV. (Sherman & Subin, 2021). Starz globally only has 30 million subscribers, 18 million of them which are streaming. Starz lost about 600,000 of those subscribers last quarter and has been trying to develop a tracking stock for its performance. Personally, I don't use any of these streaming platforms because I feel others provide more for me. This is a big reason why these platforms are doing as well,
Overall, the streaming market is extremely competitive, and you must really be original to stand out. I believe Netflix, Disney+ and Apple TV will be the winners of the streaming wars. These services provide their subscribers with different types of content at an appropriate rate each month. However, services like Peacock, Discovery and Starz won't do as great. With their limited number of subscribers, it doesn’t seem like these services will ever compare to the top dogs or the “streaming war winner.”
Work Cited:
Katz, B. (2021, November 4). Has Apple TV+ clawed its way out of the basement? Observer. Retrieved January 31, 2022, from https://observer.com/2021/11/apple-tv-plus-subscribers-growth-netflix-disney-plus-amazon-ted-lasso/#:~:text=A%20report%20from%20The%20Information,and%2020%20million%20paying%20customers
Kline, D. (2022, January 24). Netflix's problem isn't membership. it's what Disney has that it doesn't. TheStreet. Retrieved January 31, 2022, from https://www.thestreet.com/investing/netflix-has-a-content-problem-not-a-membership-problem
Levy, A. (2021, October 12). Winners and losers in the streaming wars 2021. The Motley Fool. Retrieved January 31, 2022, from https://www.fool.com/investing/2021/10/12/winners-and-losers-in-the-streaming-wars-2021/
sherman4949. (2021, November 11). Disney makes the trend clear: Growth is slowing for streaming services. CNBC. Retrieved January 31, 2022, from https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html
It is no secret that streaming services have begun to overtake how we view our entertainment media, but there is no feat for them yet as each platform fights to come out on top. Netflix was named the most popular streaming service of 2021 with Amazon Prime and Disney Plus following shortly after. There are unique aspects to each platform that determine their success, but the question is whether they will be able to hold their rank as other streaming services begin to offer new and exciting options.
ReplyDeleteOne advantage that they have is that streaming services are able to buy movies and shows from other conglomerates, but they are also able to create original content that isn’t available to watch anywhere else which is a large part in why they are so successful in comparison to older forms of viewing media. Another tactic that streaming services are using to gain viewers is that once they have bought content from other companies such as FOX, Marvel, etc, they are able to create original content based on pre-existing characters and continue storylines that would have never been continued had the content never been bought. Rani Molla and Peter Kafka from Vox report that Amazon is planning to buy MGM “with the hopes of turning brands and characters like Rocky and the Pink Panther into new shows and movies,” (Rani and Kafka, 2021). This would be a huge step for Amazon in the world of streaming and they could possibly surpass Netflix as the most popular streaming service. Netflix originals are a component as to why this service is so successful, but there is a chance that Netflix viewers will start to dwindle due to the cost of the subscription and the fact that in the past year, they have started to show a fewer selection of movies. Hulu is also a great example of how original series can impact their viewers along with the option to add other channels for a higher subscription fee including HBO, Showtime, and Starz. With a collection of universes like Star Wars, Pixar, and Marvel, Disney Plus is likely to gain popularity within the next year. Insider journalist, Kevin Webb, notes that “at $8 a month with no commercials, Disney Plus might offer the best combination of titles, streaming quality, and value,” (Webb, 2022). Being able to bundle with Hulu and ESPN+ is also an advantage that Disney Plus has over other services. However, gaining new subscribers is beginning to dwindle which is something that Disney Plus struggled with this past year. CNBC reports “Disney added just 2 million Disney Plus subscribers after more than 12 million last quarter,” (Sherman and Subin, 2021). Despite this, I believe that Disney Plus will continue to grow in popularity along with Amazon Prime and other services such as HBO Max and Hulu. I believe that newer and less known platforms such as Peacock will have a hard time competing with the other big-name platforms that everyone knows and loves. I also believe that unless Netflix can bring something new and exciting to the table, they will struggle to maintain that number one spot in on-demand streaming.
Works Cited:
Molla, Rani, and Peter Kafka. “Here's Who Owns Everything in Big Media Today.” Vox, Vox, 23 Jan. 2018, https://www.vox.com/2018/1/23/16905844/media-landscape-verizon-amazon-comcast-disney-fox-relationships-chart.
Shelton, Sarah, et al. “Best Streaming Services of 2022 | U.S. News.” U.S. News, 28 Dec. 2021, https://www.usnews.com/360-reviews/technology/streaming-services.
Sherman, Alex, and Samantha Subin. “Disney Makes the Trend Clear: Growth Is Slowing for Streaming Services.” CNBC, CNBC, 11 Nov. 2021, https://www.cnbc.com/2021/11/10/disney-netflix-and-other-streaming-services-subs-arpu-q3-2021.html.
Webb, Kevin. “The Best Streaming Services You Can Sign up for in 2022.” Business Insider, Business Insider, 3 Jan. 2022, https://www.businessinsider.com/guides/tech/best-streaming-service.
Jody Gallinger
ReplyDeleteStreaming services have taken over the entertainment industry. Especially ever since the pandemic, streaming services are the new way to watch TV shows and movies. Within the last few years there have been so many new streaming services that have come out and are slowing climbing to the top of the charts. Therefore, we have the term “streaming wars.” With the constant release of new of streaming services, the big question is always who will win and who will lose.
Netflix has always been the original and super popular streaming service for years now. However, at the end of 2021 they saw a lower subscriber count than usual. They are raising the subscription price from $13.99 to $15.49/month. This resulted in high cancellation rates. In the last quarter of the year, they did very successful although the price was risen. Many popular series made a comeback, such as, “The Witcher”, “You”, “Tiger King”, “Cobra Kai”, “Emily in Paris”, and “Money Heist.” However, Netflix’s shares also dropped 14% in the last quarter because of their subscriber drop and other streaming services becoming more popular (Spangler). Many popular shows are also being removed from Netflix which has causes an uproar from many fans. Losing your favorite show on a streaming service could be a reason to cancel your subscription. Because of this and the increase in price, I think Netflix will be one of the streaming services that we see start to struggle to find audiences within the next few years.
Many streaming services had their big break through during 2021, one being HBO Max. They increased 4.4 million subscribers within the third quarter. It was also the most downloaded streaming app in 2021 (Faughnder). At the end of 2021, an HBO Max original show called “Euphoria” went viral online. This definitely helped them gain many subscribers. It can however be hard for streaming services with a situation like this. Many people could be subscribing just for this show, causing a “binge-and-burn.” Making sure that subscribers stick around is very important. Releasing new TV shows and movies are very important to get subscribers’ attention. I think we will be seeing a lot of new HBO Max originals in 2022, and they will be one of the streaming services to dominate.
Looking at the chart titled, “Major U.S. Based Subscription Video Streaming Services”, we can really see which service is climbing to the top. Netflix is currently at 221.8M subscribers with Disney right behind them with 179M subscribers. I think Disney will surpass Netflix in number of subscribers this year. Some of these streaming services also offer deals with other streaming services. Disney includes Disney +, Hulu, and ESPN. This is also what ViacomCBS is doing, including subscriptions to Paramount +, Showtime, and others. This gives them a leg up in the streaming wars. We also saw Peacock have 54M sign ups with over 20M active accounts (Spangler). Because of these numbers I think HBO Max, Disney, and Peacock will be the ones to win the streaming wars this year. I think Netflix will be a looser this year because of all the other competition.
Works Cited:
Faughnder, Ryan. “HBO Max Is Doing Fine. but Is Streaming Actually a Good Business?” Los Angeles Times, Los Angeles Times, 11 Jan. 2022, https://www.latimes.com/entertainment-arts/business/newsletter/2022-01-11/hbo-max-is-doing-fine-but-is-streaming-actually-a-good-business-the-wide-shot.
Spangler, Todd. “Netflix Falls Short of Q4 Subscriber Target, Stock Tumbles on Weak Forecast.” Variety, Variety, 26 Jan. 2022, https://variety.com/2022/digital/news/netflix-q4-2021-earnings-subscribers-1235158494/#recipient_hashed=62dfc0b27ad1de67d64a0c44fb55f17fe8a7cd610e9d3f50edf2cced899812f7.