What Smaller Streamers Offer That Netflix Can’t
By Movieguide® Contributor
Streaming is a competitive space, and platforms are doing all they can to build a loyal audience.
The average consumer will pay for four streaming platforms at a time. Major streamers like Netflix, Prime Video, Disney+, Max, Peacock and Paramount+ are on the hunt to find a niche that will make them a worthwhile expense for viewers.
These platforms “cater to a wide range of preferences, making them easy to explore different genres from a wide range of cultures,” Geek Culture explains. Those with more specific interests, however, are turning to smaller platforms that are focusing on securing a smaller — but loyal — customer base.
“In the world of comedy, there is Dropout, born out of the comedy website College Humor. And BuzzFeed veterans-turned YouTubers The Try Guys and Watcher have launched dedicated subscription streaming offerings of their own in recent weeks in an effort to more effectively monetize the sometimes fleeting audience that YouTube or social platforms deliver,” The Hollywood Reporter said of these smaller streamers.
Consumers who love anime have Sony’s CrunchyRoll, while “AMC Networks operates services like the horror-centric Shudder and the British-focused Acorn TV; and Cineverse operates the horror service Screambox and independent film service Fandor.”
“For big companies, they’re just never going to go deep enough to serve those fan bases or audiences,” explained Erick Opeka, president and chief strategy officer of Cineverse.
“It’s very hard for big networks to produce small shows, and I think they know it,” Dropout CEO Sam Reich added. “What comedy means to the streamers now is like ONLY MURDERS IN THE BUILDING, which is millions of dollars an episode and 45 minutes and a narrative story with superstars in it.
“I don’t think it’s a coincidence that so many of these niche streamers popping up are comedy streamers, that we can produce smaller things that charm people,” he noted.
Many major streamers experience significant churn. “Overall, 42 percent of U.S. streaming subscribers ‘regularly subscribe, cancel and resubscribe,'” The Hollywood Reporter explained.
“…people who are into…whatever that niche is, creates loyalty and engagement in a way that perhaps the more generalist services have a much harder task to do,” Guy Bisson, managing director at Ampere Analysis, explained. “That, again, is one of the advantages that is playing towards these niche services dedicated fans.”
Movieguide® previously reported on subscriber churn:
New survey data reveals that consumers are significantly more likely to stick with streaming services if they are included with a bundle.
The survey found that consumer churn could be reduced by as much as 28% depending on the service. The streamers most poised to benefit from bundles are those who provide high-quality content but offer a smaller library such as Apple TV+ or Crunchy Roll.
The tendency for bundles to result in reduced churn is a win for consumers as it will motivate streamers to consider offering these deals, even when it means partnering with their competitors. Comcast now offers a bundle featuring Peacock, Netflix and Apple TV+ for only $15 per month, while Disney and Warner Bros. are expected to announce a new bundle later this summer.
Bundles have become a necessity in the industry as consumers grow tired of the continuous price hikes that have occurred in recent years. Since 2022, most major streaming services have raised their prices at least once per year, if not more, resulting in costs that have caused consumers to reconsider their subscriptions. Even with the introduction of cheaper, ad-supported tiers, many consumers have begun cutting out the subscriptions they find themselves using infrequently.
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