US Households Adding Streaming Services Hits Brick Wall
Two years of constant increases in the number of on-demand streaming services per American household has come to an end, according to Bloomberg.
A quarterly survey from research company Kantar found the number of on-demand streaming services per household peaked at 4.7. This follows two years of constant increases as new services were being added.
“Expect to see a greater rate of churn and switching as consumers are more selective about what they watch,” Kantar’s survey said.
“It may be more challenging for newer entrants in the market, like CNN+, who will have a hard time justifying their value within the already saturated market.”
This is more bad news for Netflix, Apple TV, Amazon Prime, Disney+, and other streaming competitors, and it appears oversaturation of services has emerged with the bust of CNN+.
Last week, streaming giant Netflix reported a 200K subscriber loss in 1Q22, the first subscriber decline since 2011. On a larger view, this could suggest the supercycle in streaming may have stalled (for the time being).
And it’s not just American households canceling their streaming subscriptions. In a separate report, Kantar found that British households cut their streaming services too.
Could consumers face a worsening inflation crunch and dial back their expenses, or are there just too many streaming services?
Tyler Durden Wed, 04/27/2022 – 14:20
