In the final quarter of 2024, the US streaming landscape experienced a notable uptick, primarily fueled by sports content. Kantar's latest Entertainment on Demand (EoD) data reveals that streaming services reach 96% of US households, equating to approximately 125 million homes. The average number of paid video streaming services per household remained steady at 4.1, indicating a mature and saturated market.
Shift in Streaming Preferences: Paid, ad-free streaming services (SVoD) reversed their previous decline, growing by 2% quarter-on-quarter, driven by platforms like ESPN+, Hulu, Peacock, and Paramount+. In contrast, free, ad-supported streaming services (FAST) saw a 1% decrease in weekly users during the same period.
Sports as a Subscription Driver: Live sports events emerged as a significant catalyst for new subscriptions. Prime Video, ESPN+, Netflix, and Peacock reported increased sign-ups attributed to their sports offerings. Prime Video's NFL coverage and Netflix's exclusive Jake Paul vs. Mike Tyson fight were major attractions.
Content Enjoyment vs. Subscriber Growth: Despite the surge in sports-driven subscriptions, the most enjoyed titles during this period were "Yellowstone" on Peacock, "The Lincoln Lawyer" on Netflix, and "The Penguin" on Max. However, these popular shows did not correspond directly to the highest subscriber growth, which was observed in Prime Video, Paramount+, and Tubi.
IMPLICATIONS FOR STREAMING PLATFORMS
While sports content effectively attracts new subscribers, retaining them poses a challenge. Historically, platforms centered around sports content have seen subscriber numbers plateau or decline post-season. For instance, ESPN+ experienced stabilization in its subscriber base after the football season, and Prime Video saw a reduction in subscribers during the same period. Netflix's venture into live sports with the Jake Paul vs. Mike Tyson fight in Q4 2024 immediately boosted subscribers, but sustaining this growth remains uncertain.
In conclusion, platforms must strategically leverage exclusive content, particularly live sports, as the streaming industry approaches market saturation, to attract and retain subscribers. Balancing diverse content offerings with competitive pricing and user experience will be crucial in maintaining growth and reducing churn in an increasingly competitive landscape.