Netflix’s competitors have dealt another telltale blow to the world’s biggest streamer amid its ongoing issues with subscribers.
Yesterday (Tuesday, July 19), Netflix revealed that it lost another 970,000 subscribers between Q1 and Q2 of 2022 – a significant loss that is sure to hit it financially at some point, despite a slight increase in its overall revenue. .
However, while Netflix was trying to put a positive spin on things — namely, talking about the massive success of Stranger Things 4 and a release window for its ad-supported subscription tier — the streaming giant took another hit when its report of second quarter earnings was taking place. And this time, Netflix’s main competitors are behind its latest gut punch.
According to leading analytics firm Parrot Analytics, Netflix’s six main competitors – including Disney Plus, Prime Video and HBO Max – have recorded a combined global demand share exceeding Netflix for the first time in streaming history.
Along with Hulu, Paramount Plus and Apple TV Plus, Netflix’s biggest streaming competitors held 45.1% of global audience demand for streaming originals. In contrast, Netflix only managed 41.2% – a considerable drop of nearly 14% (from 55%) since Q2 2020.
As the chart above shows, Netflix is still by far the most popular streaming platform on the market. With its 11.3% share of global demand, Prime Video is a distant second in the grand scheme of things, with Disney Plus, HBO Max and the rest even further behind.
Still, the combined global share of Netflix’s competitors is a significant moment in streaming history.
Except Netflix and Prime Video, every other streamer has grown their own share of global demand for their original content. Disney Plus share grew from 8.8% to 9.9%, Paramount Plus from 3.8% to 4.6% (a personal record for the new kid on the block), Apple TV Plus from 6% to 7% and HBO Max from 6.7% to 7.2%. Netflix was the only one of the Big Six to record a drop in its share of global audience demand for streaming originals.
Clearly, then, Netflix’s rivals are slowly making inroads into their dominance of the streaming landscape — but why?
According to Parrot Analytics, the answer is simple: Netflix’s competitors are releasing more and better original content than ever.
Again, as the bar graph above shows, Netflix holds sway over its streaming rivals when it comes to audience demand for original programming. This boils down to Stranger Things season 4, which is the streamer’s biggest English-language show of all time – around 1.3 billion hours have been watched by viewers worldwide since season 4 1 was released. in may. Only Squid Game, which racked up 1.56 billion hours watched on its initial release in September 2021, has performed better in the entire history of Netflix. Well, as far as your original programming goes, anyway.
But Netflix can’t pin its hopes on this duo to maintain its strong subscriber base of 220 million. Yes, new installments on both properties – Stranger Things 5 and Squid Game season 2 – are on the way, which are sure to dominate the TV landscape whenever they release.
Netflix, however, needs other big hitters if it wants to keep its competitors. One of their most popular shows in Ozark ended earlier this year, while another in Better Call Saul is currently on its victory lap. Other success stories, including The Umbrella Academy, Arcane, and Cobra Kai, have sizable audiences, but none of them can compete with the quartet above.
Meanwhile, Prime Video can boast big hits like The Boys and Invincible. Disney Plus has a plethora of Star Wars offers and Marvel content; the latter of which will continue to grow as more Marvel Phase 4 projects hit the platform. Even HBO Max, Hulu, and Paramount Plus have fan-favorite shows right now.
Meanwhile, Apple TV Plus beat Netflix for one of the latter’s most coveted awards – the award for Best Picture at an Oscars ceremony – when CODA secured the gong at the 2022 Oscars. map and would have been difficult for Netflix execs to watch.
Netflix, then, really needs to up its game in the original movies and shows department. There are potential success stories on the way – The Gray Man, a new movie series starring Ryan Gosling and Chris Evans, could give Netflix a really great movie franchise to make for years to come. But for every movie or TV production that Netflix’s subscriber base would you like To see, there’s a slew of reality TV deals, less than captivating rom-com genre fare, and the cancellation of fan-favorite shows that are likely turning viewers away.
A change to Netflix’s original programming plan, along with other necessary changes, could impede progress by Disney Plus and company. Tien Zhou, CEO and founder of enterprise software company Zuora, believes that Netflix needs to adapt, however, for this.
“Netflix’s death was grossly exaggerated – there’s no ‘Big Unsubscribed’,” Zhou tells .
“What’s happening is, after being the only player in the streaming field, Netflix finally now has competition. They’re still the king of streaming, but in order to continue leading, they can’t just focus on subscriber acquisition – they need to focus on keeping their current subscribers coming back.
“In addition to more shows, Netflix should rethink the binge, offer annual plans and break apart its content to create smaller, cheaper (and ad-free) offerings. But whatever happens, we, the consumers, are the winners.”
It’s true that streaming fans have never had it better – as Zhou claims, we’re the winners in all of this. Netflix, however, also wants to keep winning – and, based on the ominous warning from its rivals, has a big fight on its hands to keep its crown.
For more Netflix-based content, check out our best Netflix series and top-rated Netflix movie lists.