Streaming Subscriber Revenue Projected To Rise 32% By 2024, Slowdown To Follow

Although U.S. subscription fee revenue from streaming TV platforms will rise 32% over the next two years to hit $56 billion, a slowdown in business will follow, according to Digital TV Research Group.

From 2024 to 2027, subscription revenues will be virtually flat at $57.1 billion due to growing advertising-supported video options from subscription-based services as well as independent AVOD platforms.

In 2027, Netflix will continue to lead when it comes to subscription fees from streaming platforms at $10.4 billion.

Due to an expected shift to its new advertising supported option, however, Netflix will lose $1.4 billion in subscription fees by 2027. However, “Netflix will more than recoup these SVOD revenue losses with AVOD sales,” according to Simon Murray, principal analyst at Digital TV Research.

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Competition will be stronger against Netflix over the next five years.

Digital TV Research says Netflix will see a decline in U.S. subscribers, to 63 million subscribers by 2027 -- down by 4 million.

By 2027, Hulu, Disney+, HBO Max and Paramount+ are projected to grow to between 40 million and 50 million subscribers.

In addition, Murray says: “Some consolidation – mergers and closures – is likely.”

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