Premium Streaming Subscriptions Slow To 10% Growth: Antenna
- by Wayne Friedman , February 27, 2024
Premium streaming subscriptions slowed in 2023 to a growth rate of 10.1%, with total subscriptions of 242.9 million at the end of 2023, according to Antenna, a research company covering the subscription economy.
Last year’s gross subscriber additions total 164.7 million gross additions, compared to
140.5 million cancellations. Net additions came to 24.2 million.
140.5 million cancellations. Net additions came to 24.2 million.
This growth gains in
2023 were half that of 2022 streaming subscriptions which rose 21.6% over the previous year -- in 2021 there was a 32.1% rise, and in 2020, a 25.3% gain.
These results exclude free tiers, MVPD distribution and select bundles and include results for Apple TV+,
Discovery+, Max, Hulu (SVOD only), Paramount+, Peacock, and Starz.
Subscriber churn --- the loss and gain of subscribers -- jumped 0.8 percentage points to an average 5.5% year-over-year. Netflix had the lowest churn rate -- just below 2%. Starz and
Apple TV+ were the highest at 11% and 10%, respectively.
Netflix
still has a leading 26% share of subscriptions -- the same as what Antenna recorded a year ago, followed by Hulu with14%, Paramount+ (13%); Disney+ (12%); Max (12%) and Peacock
(11%).
Peacock, Paramount+ and Netflix drove the most
subscription growth last year -- Discovery+, Disney+, and Hulu -- had slight declines.
Antenna says “serial churners” canceled a premium streaming service more than five times the past two years; 19% have canceled services more than seven
times.
Antenna sees the streaming video category entering a new
era,” says the authors of the study: “The previous stage was hyper-focused on acquisition – which made sense, as these new brands had to
establish a mass audience.”
“But now that the largest players have that scale (and the niche players have introduced themselves to their target audiences), they must shift their focus to managing their
subscribers.”
Antenna believes more effort will go into
marketing and product strategies, and key performance indicators, with more of a reliance on data.
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