Premium streaming financial success requires a lot of different kind of TV/movie content – not just a top-ten list or the most-viewed shows, according to MoffettNathanson’s latest report. For example, looking at Netflix, the research revealed that 63% of viewership was driven by titles “neither in the top 100 nor in the bottom 10,000.”
This analysis comes in response to Netflix's six-month research release last week, in which the company said 99% of all viewing came from 18,000 titles, with nearly 100 billion hours viewed. MoffettNathanson adds that ten titles drove 8% of all viewership in the first half of 2023, and 100 titles drove 33%.
MoffettNathanson went on to calculate that, in the first half of 2023, Netflix’s 242 million global subscribers watched a total of 93.46 million hours. That means that the average Netflix subscriber is watching about 2.1 hours of programming per day, which might be more than enough to minimize churn.
● THE GROWING COSTS OF STREAMING
Subscriber expansion for premium SVOD services in the United States has slowed to its lowest level since 2018, before the beginning of the “streaming wars.” Moreover, churn has increased dramatically over the past five years as well, MoffettNathanson noted in another report.
An examination of just how much premium subscription video-on-demand pricing has increased recently adds context to the aforementioned dynamics.
A collection of the pay tiers of Netflix, Apple TV+, Max, Peacock, Paramount+, Disney+, and Hulu will now set a consumer back nearly US$105 a month. That is US$17 a month more than it was just a year ago, and nearly double the nearly US$55 all these services were collectively priced at during the height of the “streaming wars” in 2020-21.
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