According to recent statistics published by research firm Antenna, and reported by The Wrap, as more big-name streaming providers have entered the market over the last two years, Netflix’s dominance over the U.S. subscription video on-demand market has suffered significant losses.
The important conclusion from Antenna’s data: Netflix accounted for 29 percent of all paid streaming subscriptions in the United States by the end of June, a 19 percent decrease from the previous quarter. Netflix’s declining share of the American streaming pie follows the debut of newer services, such as Disney+ and NBCU’s Peacock, which have eroded Netflix’s first-mover advantage.
The following figure, courtesy of Antenna’s latest Quarterly Growth Report, provides a more detailed look at the American SVOD market: Is this a sign that Netflix is about to follow in the footsteps of the short-lived Quibi? However, there have been minor indicators that the streaming heavyweight’s dominance on the domestic market is eroding. Netflix just disclosed that it lost North American users during the last quarter for the second time in its history – 400,000 to be exact during Q2. (During the quarter, the company added 1.5 million members, the majority of them were from Asia.)
The success of new services like Disney+, Peacock, and Discovery+, and the growth of existing players like HBO, Showtime and Starz, demonstrates that consumers will support a robust selection of Premium SVOD players. And specialty SVOD services, which focus on one particular audience or content category, have grown significantly faster than the Premium players in the past two years.
In fact, when we look at YoY Subscriber Growth across the 17 services that were available in mid-2020, Specialty services dominate.
This has become a very diverse SVOD market, which is nice for consumers, but how long will it last?