DUBAI: With more than 200 streaming providers around the globe the number of platforms is proliferating, according to Flixed.
And while the coronavirus pandemic has spurred unprecedented growth in viewership the gradual return to normality has seen a churn in subscribers for many streaming companies.
Netflix, which remains the world leader in the streaming space, last year commanded a 21 percent share of the US subscription video-on-demand market, but with competition increasing, it has been experiencing a slowdown, data analytics firm GlobalData said.
The company’s share of US revenue from subscription streaming video was forecast to shrink to 30.8 percent by the end of 2021, from nearly 50 percent in 2018, according to market researcher eMarketer.
Francesca Gregory, associate analyst in thematic research at GlobalData, said: “Netflix experienced a slow start to 2021, following a light slate of content as pandemic production problems came to the fore.
“Although fresh content in its third quarter boosted subscribers to 214 million, competing platforms are experiencing explosive growth.”
By November, Disney+ had racked up 118 million subscribers, and Amazon Prime had 175 million.
“As the number of streaming platforms increases, and the market approaches peak fragmentation, SVOD platforms will use content portfolios to differentiate themselves,” Gregory added.
For example, Amazon has committed $1 billion to its “The Lord of the Rings” even before an episode has aired, while Netflix was forecast to spend more on original programming than ever before. By 2025, 46.5 percent of its projected $18.92 billion budget will go toward original content, compared with 37.8 percent in 2020, eMarketer said.
Besides content portfolios, companies will have to explore alternative revenue sources.
Gregory said: “We have already started to see Netflix branching out to different areas, with the launch of Netflix Games in November 2021 and a co-streaming partnership with Twitch. I wouldn’t be surprised if the company looked to experiment with more gaming streaming platforms in the future.”
She pointed out that as competition increased during 2022, “reaching different audiences will continue to be a key strategy. Companies that fail to secure a market niche will have a limited shelf life in the crowded SVOD market.”