Market Saturation
The U.S. streaming market is nearing saturation, with 95% household penetration and minimal growth.
However, average subscriptions per household are increasing (now at 3.9).
Growth Drivers
"Subscription stacking" (holding multiple services) is driving growth in the saturated market.
Ad-supported tiers are contributing to growth.
Apple TV+ and Peacock Gaining Ground
Both services saw significant growth in subscriber share, driven by new releases and sports content.
Amazon Prime Video's Challenges
Prime Video experienced subscriber losses in Q1 2024 due to:
Post-holiday cancellations (typical pattern)
Increased churn from the introduction of ads
Despite this, Prime Video's advocacy (Net Promoter Score) has risen among remaining subscribers.
Content Trends
Dramas dominate viewership, with 8 out of the top 10 watched titles being dramas.
Long-running TV dramas are outperforming original series and films.
Genre fatigue is evident, with declining interest in Sci-Fi, Fantasy, Thriller, and Action genres.
Key Takeaways
The US streaming market is maturing, making growth challenging.
Subscription stacking and ad-supported tiers are becoming crucial for continued expansion.
Content preferences are shifting towards established dramas, posing challenges for original content creators.
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