Hold onto your remote controls, folks! The State of Streaming in 2023 is an adrenaline-fueled rollercoaster ride through the current trends and tides of the entertainment industry. Take a deep dive into the ebb and flow of viewership, where streaming stands poised on the precipice of dominance, barely edging out cable and broadcast TV.
Dare to ask, “Who is the undisputed King of Streaming?” and find yourself bowing to the might of Netflix. Discover how people consume content, from the comfort of their smart TVs to the convenience of their smartphones. Peek into subscribers’ wallets and uncover the dollar figures they want to part with for their streaming fix. Look ahead to the challengers waiting in the wings, ready to disrupt the disrupters, and explore the phenomenon of “subscription fatigue.” And lastly, delve into the role of hardware in the ongoing streaming wars.
Buckle up… because this is a wild, fascinating ride through the heart of our modern entertainment world.
The State of Streaming (2023)
According to a study by Nielsen, streaming accounted for 34.8% of viewership– just barely inching ahead of cable TV (34.4%) and broadcast TV (21.6%) to take the crown. Sports packages are the final stronghold keeping more broadcast fans from cutting the cord.[2]
King of Streaming
Who is the King of Streaming? You guess it… Netflix. According to research, the streaming giant was accessible to 81% of respondents. Amazon Prime followed with 62%, Disney+ with 55%, Hulu with 48%, and Max with 40%.[1]
73% of respondents said they would buy a Netflix TV, although the dominant player does not have a hardware television device
How Are People Streaming?
Just as many people stream on their smartphones as their smart TVs (64%.) Though 73% of those between 13-24 stream on smartphones.[1]
The majority of Americans stream on the big screen. In fact, 65% watch on smart TVs with built-in streaming, while 36% use a streaming stick with a TV.[1]
How Much Are People Spending?
Most people pay between $11 and $50 monthly for various streaming services. 46% of subscribers have 1-3 services, 41% have 4-6 services, and 13% have access to 7 or more services.[1]
How Much Time Are People Streaming Each Week?
Streamers are spending a lot of time in front of their devices. Occasional streamers spend 1-4 hours (15%), daily viewers spend 5-15 hours (24%), TV lovers spend 16-25 hours (24%), and couch potatoes spend more than 26 hours per week streaming (15%).[1]
Streaming Originals
Streaming platforms’ biggest draw for their audiences is through original content and studio productions. The data suggests 34% prefer to watch original content occasionally, and 36% prefer equally as much as other streamed content, while 24% of consumers say they like originals better and watch that type more than licensed content.[1]
Disrupting the Disrupters
A newcomer is disrupting the disrupters of traditional TV. And that’s free ad-supported TV services (FAST). These include services like Pluto TV, Roku TV, Tubi, and Peacock, which have grown significantly over recent years. These streaming services license tried-and-true content such as “The Real Housewives” or “CSI,” whereas users can binge-watch the franchise on an entire channel, yet they don’t have control over commercials like traditional television.[1]
FAST is different from ad-supported video-on-demand (AVOD). Services such as Sling and Crackle support AVOD content. In a survey, 56% of respondents are willing to watch ads on free streaming platforms, whereas only 26% are willing to watch on paid streaming platforms.[1]
Advertisers should take notice of these statistics since the research also revealed consumers generally feel that ads are more personalized on free (53%) and paid (54%) streaming platforms compared to cable (36%.)[1]
Advertisers should also take notice of consumers’ tolerance level for ads across platforms, especially demographics. Research suggests most consumers prefer shorter ads of 15 seconds or less (69%.)[1]
Subscription Fatigue
With an overwhelming choice of streaming services in the marketplace, consumers feel “subscription fatigue” with too many options.[1]
Streaming platforms and advertisers are keen on this. Hence, partnerships and bundles to maximize subscriptions. For example, T-Mobile customers receive free Netflix, and Verizon customers receive a free Disney+ bundle.[1]
Hardware Enters the Streaming Wars
Hardware devices interestingly segment the streaming market. Ruko shifted from just set-top devices and streaming sticks to building their TVs with embedded streaming services.[1]
In fact, 73% of respondents said they would buy a Netflix TV, although the dominant player does not have a hardware television device. Ultimately, hardware TVs can certainly be a method to differentiate in the streaming wars and inspire loyalty.[1]
State of Streaming Takeaways
So, there you have it – a mesmerizing journey through the state of streaming in 2023. From viewership patterns to the industry’s crowned kings and feisty challengers, the terrain is as diverse as it is captivating.
As the curtain falls, we’re left pondering the future of streaming and its dance with hardware, all while keeping a keen eye on the emergence of potential disruptors. It’s a whirlwind of change, disruption, and competition – just another day in the ever-evolving entertainment industry! Until next time, keep those remotes handy and your streaming apps updated. After all, you never know what’s coming next in the wild west of streaming!
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- The Cord Is Cut — Now What? (Feb 2023)
- Nielsen: The Gauge Reveals Streaming Surpassed Cable for the First Time in July, Capturing its Largest Share of TV Viewing to Date
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