Streaming Boom Slows as Subscriber Growth Halved in 2023
By Movieguide® Contributor
A new report revealed that subscriber growth on streamers halved in 2023, signaling a shift in the industry and the end of a period of massive growth.
Subscriber growth fell to 10.1% last year, down from 21.6% during 2022. During that time, however, streamers proved resilient as the report uncovered the rates of users resubscribing after previously canceling their subscriptions. Within a three-month period, 25% of consumers were “won-back,” while nearly 40% resubscribed to a previously canceled subscription within 12 months.
Rather than relying on tremendous subscriber growth as platforms have in the past, this data proves that streamers need to focus more on their current user base. Fortunately, this change in mentality has already occurred, and many platforms are attempting to find profitability under their current subscriber counts rather than depending on major growth in the future.
The tides are also turning among the industry leaders. Paramount+ surpassed Disney+ in subscribers. Meanwhile, while Netflix remains No. 1 in subscribers, the platform’s total market share has significantly fallen in recent years. At the start of 2019, it held roughly 50% of the total market, whereas now, it only holds a quarter.
The slowdown in subscriber numbers is unsurprising, given the changes in the industry over the past year. Every major streaming service has raised its subscription cost within the past year, disincentivizing consumers from subscribing to multiple services.
While the industry continues to change, subscriber numbers may still be saved as the majority of streaming platforms are now considering bundling with other services thanks to new monetization avenues through ads. If lucrative bundles are introduced to the market, subscriber numbers may jump in upcoming years as consumers look to cash in on the deals.
Nonetheless, as the streaming boom slows down, streamers may soon be forced to consider the cost of operation, and some may be shuttered in upcoming years as the promise of subscribers in the future is no longer a surefire deal.
Movieguide® previously reported:
The business strategy for streamers has significantly shifted in the last year. While these platforms now fight to make a profit, consumers have noticed the constant price hikes.
The average cost for streaming services rose by 23% last year. Nearly every streaming platform raised its monthly subscription cost by three or more dollars, a change that has many consumers reconsidering their subscriptions.
Last November, Disney+ received massive backlash after announcing a price hike, and “Cancel Disney Plus” trended across social media as millions of Americans realized the service may not be worth the price. While not every platform has faced significant backlash, the rising costs are beginning to weigh on consumers.
The industry as a whole also saw a significant price point reached last August, when the cost to subscribe to the major streaming services topped the price for a basic cable plan for the first time. Since then, multiple platforms have further raised their prices, widening this gap.
Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
