And there are certainly other factors that all streaming service providers should have in mind going forward.Ĭurrently, the world is recovering from a once-in-a-lifetime global event, which has brought on once-in-a-lifetime global consequences, and then some. However, sticking with this explanation would provide a very narrow view of the future of the industry. In Netflix's case, executives blamed strong expansion strategies from competing brands and password sharing. So why the stark contrast between the two?Īt first glance, it would seem like it comes down to truly specific reasons. In Latin America, streaming alone accounts for more than 85 per cent of the market, and it is one of the regions with the highest revenue growth. And, according to IFPI's Global Music Report, paid subscription streaming revenues increased by 21.9 per cent in 2021. Its streaming subscriptions grew 26 per cent in 2021, Variety reported. Nonetheless, taking a broader look across industries, it's clear that the trend is strongest in the subscription-video-on-demand (SVOD) realm, but not so much anywhere else. Going by the previous examples, one could say so. This begs the question: are subscription-based streaming services over? And although Amazon Prime and Disney+ have been adding new clients non-stop in the past couple of years, industry experts argue that it won't be long before their growth hits a wall. Similarly, CNN+ – CNN's streaming service – shut down less than a month after launching due partly to poor subscription numbers, but also to a change of heart from its new parent company. The information about the undisputed king of streaming services worldwide sent Wall Street into a downward spiral that resulted in its stock dropping over 20 per cent on the day of the announcement. However, the latest industry news paints a different picture.ĭuring the first earnings call of the year, in April, Netflix announced that it had lost 200,000 paying customers, its first subscriber loss in over ten years. Their potential was quickly noticeable as revenue for advertising was diverting elsewhere and media consumption patterns were shifting. Over the last decade, subscription-based business models became ubiquitous across all types of media companies.
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