The global video streaming industry is undergoing a significant shift, marked by declining viewer engagement but notable improvements in service quality, according to the latest NPAW 2024 Video Streaming Industry Report. While consumption metrics have softened, operators are focusing on optimizing user experience to retain subscribers in an increasingly competitive market.
NPAW’s report highlights that average daily playtime per user dropped by 12% year-over-year across both subscription-based (SVOD) and advertising-based (AVOD) services. In particular, connected TVs saw a 7% decline in usage, while smartphones experienced a sharper 18% decrease. This reduction in engagement is attributed to market saturation, subscription fatigue, and shifting consumer behavior as users diversify their entertainment options beyond streaming platforms. However, despite lower engagement levels, the number of users per service grew by 1.7%, suggesting that while individual consumption is down, overall reach continues to expand.
At the same time, the report emphasizes a clear improvement in streaming quality. Buffering times decreased by 18% globally, and video start times improved by 12%, reflecting operators' investments in infrastructure and content delivery optimization. Bitrate quality also saw a 9% increase, enhancing the overall viewing experience. These advancements are critical as providers seek to differentiate themselves not just through content libraries but through seamless, high-quality playback.
The findings also note that customer expectations for performance are rising. Viewers are less tolerant of technical issues, making quality of experience a key factor in subscriber retention. Platforms offering consistent, high-definition streaming with minimal interruptions are better positioned to maintain user loyalty in a crowded market.
Regionally, NPAW data indicates that Europe experienced the steepest drop in average viewing time at 14%, followed by North America at 11%. In contrast, parts of Asia-Pacific showed more stable engagement levels, driven by growth in mobile streaming despite the global downward trend.
As the streaming industry matures, these findings signal a critical pivot point. Providers are being forced to balance content strategies with technological excellence to sustain growth. The focus is shifting from rapid user acquisition to maximizing lifetime value through improved service quality and personalized user experiences. In a market where consumers have more choices than ever, delivering flawless performance could be as important as securing the next big content hit.
Related News
