Netflix’s ad-based tier aims to reduce the high churn the company faced in 2022, attract new subscribers, and lure back those who canceled. However, by all measures, the rushed experiment is failing fast.
Last year was the first year in the previous four years that didn’t welcome a new subscription streaming service from Hollywood’s major players. The lack of a new streaming service did not stop the existing services from offering new ways to watch content through paid and free ad-supported options.
Streaming services are scrambling for new strategies to keep their existing subscribers in a highly crowded domestic market. The level of churn among premium streaming services like Netflix, HBO Max, and Disney+ has accelerated.
Disney Streaming overtook Netflix as the world’s streaming leader in July 2022. Across all Disney streaming platforms (Disney+, Disney+ Hotstar, ESPN+, and Hulu), the company boosts 222.2 million subscribers compared to Netflix’s 220.7 million.
Netflix’s subscribers have slowed sharply in the first half of this year compared to 2020 because of the popularity of Disney+ among families, the loss of popular licensed content, and other streaming competition from the major studios.
As a result of diminishing content availability precipitated by production delays and cancellations, there will be large programming gaps for traditional television networks and OTT platforms to fill over the next two years.
SVOD is still a minor segment of the overall streaming market in Germany. Proportionally, Germany spends less than half of US households ($24 billion) on SVOD services when adjusted for currency and population.