【SensorTower】2023年流媒体应用报告246mb

TheStateof

StreamingApps2023

AnAnalysisofTVStreamingAppMarketTrendsintheU.S.andEurope

Introduction

Theentertainmentindustryisundergoingatransformativeshift,withstreamingplatformstakingcenterstage.AstrategythathasgarneredsignificantattentionisNetflix’scrackdownonpasswordsharing.WhilethismovehasbeenbroadlysuccessfulacrossNetflix’sglobalmarkets,includingtheU.S.,itencounteredchallengesinsomecountries.Forinstance,followingNetflix’spasswordcrackdown,freestreamingplatformsandpublicbroadcastershaveseenasignificantincreaseinactiveusersinbothSpainandFrance.TheseshiftssuggestthatwhilestreaminggiantslikeNetflixarebecomingmoreandmoreinfluential,traditionalbroadcastingchannelsandcompetingstreamingplatformsmaystillholdconsiderablesway.

Asthelandscapecontinuestoevolve,streamingplatformsareadaptingtheirstrategiestoenhanceprofitabilitywhilealsorefiningtheiroutreachmethodstotapintodiverseagegroups.Somestreamingplatformsarefindingsuccessinacquiringnewaudiencesbyadjustingtheirdigitaladstrategies.Forinstance,platformslikePlutoTVhavestrategicallyincreasedtheiradinvestmentsinplatformspopularwithyoungeraudiences,suchasTikTok,aimingtocapturethisvibrantmarketsegment.Ontheotherhand,Disney+,withashiftinadvertisingfocus(alongsideotherstrategicmoves),haseffectivelydrawninamorematureaudience,recognizingthepotentialofthisdemographic.

Buildingonthismomentumofstrategicshifts,Disney+facesitsownchallengesandopportunities:WhileitstillstrugglestobethemostpreferredalternativeofbothNetflixandAmazonPrimeVideousersacrossanumberofcountries,itsupcomingplantomergewithHuluintoasinglemobileappfortheU.S.marketcouldsignificantlyboostengagementandpresentuntappedopportunitiesforadmonetizationnextyear.

Furthermore,theplatform'sevidentappealwithinthegamingcommunitysuggestsgamingcouldalsoemergeasasignificantopportunityforDisney+inthefuture.

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TheU.S.TVStreamingMarketRemainsCrowded,WhileEuropeisDominatedbyFewerPlayers

MonthlyDownloadsofLeadingTVStreamingApps

U.S.vs.Europe

U.S. Europe

TheU.S.televisionstreamingmarket,markedbyfiercecompetition,standsinstarkcontrasttoEurope's,whichishometomanysmaller

6M

6M

playersandafewpan-Europeanheavyweights.Inrecentyears,theentryofnewU.S.streamingserviceslikeHBOMax,Peacock,andParamount+intoEuropehasrampedup.However,theylargelyremainniche,possiblydueinparttoregulatoryhurdlesliketheEU's2021rulerequiring30percentofforeignTVstreamingcontenttobeEuropeanin

Netflix

HBOMax

Peacock

Netflix

AmazonPrimeVideo

Disney+

origin.Despitethisrequirement,theoldcontinent'sstreamingsceneisdominatedbyU.S.-basedservices:Netflix,Disney+,andAmazonPrimeVideoarethethreemostpopularplatformsacrossEurope,accountingfornearly95Mdownloadsin2022.

IntheEuropeanUnion,Netflix,Disney+andAmazonPrimeVideoarelockedinatightraceforconsumerattention.Althoughpopular,Netflixisn'tthetopchoiceineverycountry:inthefirsthalfof2023,amongtheEU'sfourlargestcountries—Germany,France,Italy,andSpain—itdidnotclaimthetopspotbydownloadsinanyofthem.AmazonPrimeVideowasthepreferredchoiceinFranceandItaly,whileDisney+wasfavoredinGermany.InSpain,HBOMax(nowMaxintheU.S.)tookthelead.Yet,NetflixheldthemostactiveusersinEurope,withtwiceasmanymonthlyactiveusers(MAUs)asitsclosestcompetitor,Disney+,andrankedfirstbyactiveusersinallEuropeancountriesexceptSweden.

Note:

TheHBOMaxappwasreplacedbyMaxintheU.S.inMay2023.ThischangeledtoasurgeinMaxappdownloads,exceeding13MinMay2023duetoHBOMax'susermigration.Tomaintainconsistencyandaccuracy,Max'sdownloadfigureshavebeenexcludedfromthechartsinthisslide.

4M

2M

HBOMaxappphasedout; usersshiftedtonewMAXapp

0

4M

2M

0

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TimeSpentonNetflixHasRemainedStableAfterPasswordCrackdown

Netflix'scrackdownonpasswordsharinghasproveneffectiveingainingnewsubscribers.Withitspaidsharinginitiative,launchedinMay2023(earlierinsomemarkets)andnowactiveacrossmostofNetflix’sregions,itsawa5.9MincreaseinnewsubscribersinQ22023.Netflixhasreportedthatengagementhasremainedstrongacrossallsubscribertiers.DatafromSensorTowerconfirmsthatoverallengagementwithitsmobile

WeeklyTimeSpent

GooglePlay,U.S.andworldwide

110

100

platformhasindeedremainedconsistentwithpreviousweeks,before 90

thepasswordsharingcrackdownwasimplemented.

IntheU.S.,weeklytimespenthasremainedstableatmorethan 80

90minutes,inlinewithpreviousperiods.Globally,timespentintheapphasalsoremainedsteady.Steadyuserengagementandanincreasein

U.S.

activeusersinseveralmarketssupporttheeffectivenessofNetflix'spaidsharingchanges.

140

120

100

Worldwide.

80

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NetflixHoldsFirmintheU.S.andAsia,butSomeEuropeansMayBeScoutingNewBingeTerritory

Supportingthedataontimespent,Netflix'sweeklyactiveusers(WAUs)havealsocontinuedtogrowacrosstheglobe.Notably,theU.S.,Netflix's

WeeklyActiveUsersGrowthPostPasswordCrackdown

5weeksbeforevs5weeksafterNetflix’spasswordcrackdown,selectcountries

5%

largestmarketbyweeklyactiveusersin2022,wasamongthetopperformersintermsofWAUgrowth,joinedbythePhilippines,MalaysiaandIsraelamongothers.ThisgrowthbolsterstheargumentthatNetflix'srecentcrackdownonpasswordsharinghasnotnegatively

4.2%

4%

3.9%

3%

impacteduserengagement.

However,inEurope,thereactiontoNetflix’slatestpolicyappearsmorelukewarm.WiththeexceptionofItaly,growthinWAUshasbeen

relativelysubduedacrossmajorEuropeanmarkets,includingGermany,theU.K.,andtheScandinavianregion,withFranceshowingthemost

notabledownturn.Interestingly,inmostlargeEuropeancountries,

2.5%

2.3%

1.9%

1%

0%

thedipinNetflix'sweeklyactiveusershasn'tcorrespondedwithasignificantuptakeincompetingstreamingservices,suggestingthatusersdisengagingfromNetflixmaybebidingtheirtimebeforecommittingtoanotherservice.InFrance,however,someofNetflix’susersmaybeexploringnewbinge-watchinghorizons,withsome

-0.2%

-0.6%

competingstreamingservicesseeingarecordgrowthinactiveusers.

-2.5%

-3.2%

Note:

NetflixinitiatedacrackdownonpasswordsharingearlierinQ12023inseveralmarkets,includingSpain,Canada,Portugal,andNewZealand.Thecountriesincludedinthechartontherightaresourcedfrompressreportsandrepresentasubsetoftheover100nationswhereNetflixhasreportedlyimplementeditspasswordsharingcrackdowninMay.

-5%

Philippines

Malaysia

Singapore

Israel

U.S.

Italy

U.K. Germany

Scandinavia

France

Worldwide

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FrenchAreTurningtoNationalBroadcastersandFreeTVStreaming…

Netflix'sweeklyactiveusers(WAUs)inFrancehaveexperiencedsomeofthesteepestdeclinesinEurope,withathreepercentdecreaseinthefiveweeksfollowingNetflix'scrackdownonpasswordsharing.

WeeklyActiveUsers(WAUs)forFranceTV

France

250K

StartofNetflix's

FranceTV

SensorTowerdatasuggeststhatFrenchNetflixusers,35percentofwhomreportedlyshareaNetflixaccountaccordingtoresearchfirmDigitali,mightbeexploringalternativestreamingservices.

FranceTV,thenationalpublictelevisionbroadcaster,hasseenasubstantialincreaseinmobileweeklyactiveusersinrecentweeks,growingbyover30percent.WeeklyactiveuserssurgedintheweekleadinguptoNetflix’spasswordsharingcrackdown,anduserlevelshaveremainedhighcomparedtothefirstfewmonthsof2023.

125K

0

PasswordCrackdown

January2023 March2023 May2023 July2023

Notably,sinceAugust2022,FranceTV,alongwithotherpublicbroadcasters,nolongerrequiresaTVlicensefee,significantlyincreasingitsaccessibilityandmakingitamoreappealingalternativetopayingstreamingservices.ThisstandsincontrasttomanyotherEuropeancountries,includingtheU.K.,Italy,andGermany,wherealicensefee

isstillinplace.InEurope,apublicTVlicensefeeisamandatorytaxtypicallyrequiredbyhouseholdsthatownequipmentcapableof

receivingtelevisionbroadcasts,orthatwatchliveTV.

WeeklyActiveUsers(WAUs)growthPostPasswordCrackdown

France,fiveweeksafterpasswordcrackdownvspreviousfiveweeksforselectTVstreamingapps

40%

32%

20%

6% 3% 1%

Lendingcredibilitytotheshifttowardsalternativestreamingservices,

Frenchviewershaveshownanincreasedinterestinotherfreeplatformstoo.TheseincludeMolotov.tv,whichoffersallthemajorFrenchnetworks,MYTF1,apopularFrenchcommercialtelevisionnetwork,

andARTE,apublicservicechanneldedicatedtoculturalprogramming.

0%

-3%

-20%

FranceTV MYTF1 Molotov ARTE Netflix

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…AndinSpain,Netflix’sPaidSharingHasLedtoaRecord

WeeklyActiveUsers(WAUs),Netflix

Spain

400KFewerUsers

AmongEuropeancountries,SpainhasseenthesharpeststingfromNetflix'spasswordsharingcrackdown,rolledoutearlierthanmostinFebruary2023.Inthespanofamonth,theappexperiencedalossofover370Kactiveusers.ThisdownturncoincidedwiththerolloutofNetflix'spaidsharingfeature,indicatingthatthenewpolicymaynothavebeenwarmlyreceivedbySpanishviewers.

DatafromDigitalirevealedthatSpainhadthemostNetflixpasswordsharing(47percent)amonglargeEuropeanmarkets.Thiscouldexplainthesteepuserdecline:Withnearlyhalfofsubscriberssharingaccounts,evenaminorpercentageofusersoptingnottocreatetheirownaccountsinresponsetothecrackdownmighthavecontributedtothesubstantialdropinusernumbers.

Crackdownon

6M passwordsharing

beganinSpain

4M

2M

Febaruary2021 February2022 February2023

Netflix

Incontrast,competitorslikethefreeTVstreamingplatformPluto,HBOMax,Disney+,andSpain'spublicbroadcasterRTVEhaveallgainedactiveusersintheweeksfollowingNetflix'spasswordsharing

crackdown.HBOMax,whichsawatwopercentincreaseinengagement,investedarecordamountofdollarsondigitaladsinthemonthleadingtoNetflix’spasswordcrackdown.Concurrently,Disney+offereddiscountedyearlysubscriptionstoenticenewuserstosubscribe.AndPluto,withatouchofirony,launchedanadcampaignemphasizingthatitsviewerscouldwatchfilmswithouttheneedtoborrowanaccount

-aveiledcriticismattheverypracticeNetflixwastryingtocurb.

WeeklyActiveUsers(WAUs)growthPostPasswordCrackdown

Spain,fiveweeksafterpasswordcrackdownvspreviousfiveweeksforselectTVstreamingapps

5%

2%

1.2%

1.3%

-0.9%

-9%

6%

-2%

-10%

PlutoTV HBOMax Disney+ RTVE AmazonPrimeVideo Netflix

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NetflixDominatesinUserEngagementasSmallerandFreeTVStreamersRise…

InthecompetitivelandscapeofTVstreamingapps,NetflixcontinuestoholditsgroundastheplatformwiththemostengageduserbaseintheU.S.Thestory,however,isquitedifferentforotherheavyweightssuchasAmazonPrimeVideoandDisney+.Despitetheirextensivecontentlibraries,theirshareofpowerusers-thosewhoopentheappmorethan15dayspermonth-trailssignificantlybehindNetflix.

Moreworryingly,theirengagementlevelshavestalledyear-over-year.ThistrendmighthaveservedasacatalystforDisney+'srecentexperimentationswithitsreleasestrategy,whichwillseeMarvel’sshow‘Echo’beingreleasedentirelyatonce,markingafirstinMCUhistory.Moreover,Disney+'splannedmergerwithHuluhasthepotentialtosubstantiallytransformtheuserengagementlandscape.Bycombiningthetwoplatformsintoaunifiedmobileapplication,theycouldleverageHulu'srobustengagementlevels.ThismergermayprovideDisney+theboostitneedstocompetemoreeffectivelyinthestreaminglandscape.

Whilethestreaminggiantsbattleforuserengagement,therehasbeenanunexpectedtrendinthedirectionoftheirsmaller

competitors:FreestreamingplatformslikeTubiandPlutoTVhavesurgedinpopularityinthefirsthalfof2023,boostingtheirpowerusersby50and26percentrespectively.Thissuggeststhattheseplatformsaresuccessfullycultivatingadedicateduserbase.Ashouseholdstightentheirbeltsduetothecostoflivingcrisis,these

PowerUserPercentageforSelectStreamingApps-H12022vsH12023

GooglePlayusersopeningtheappmorethan15dayspermonth,U.S.

10.7%10.6%

8%

7.3%

5.2%

4.7%

3.7%

3.4%

3.4%

3.3%

3.2%

2.8%

3%

2.9%

2%

2.3%

11%

5.5%

0%

Netflix Hulu Peacock Disney AmazonPrime Paramount Tubi Pluto

platforms-offeringfreecontent-maycontinuetobeattractiveoptionsforconsumersseekingaffordableentertainment.

H12022

H12023

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RiseofLow-CostAlternativesMayReshapeFreeTVStreamingAcquisitionStrategy

Netflix,Disney+andAmazonPrimeVideoAverageUsers’LikelihoodtoUseOtherApps

Q12023,SelectAndroidappsintheU.S.,Likelihoodofusingappwithina30dayperiod

AmazonShoppingisamongtheappsmostlikelytobeusedbyusersofleadingTV

DatafromSensorTower'sAppOverlaprevealsthatusersoffreeTVstreamingserviceslikeTubiandPlutoTVarenotsignificantlyengagingwithotherfreeplatforms,insteadshowingapreference

forpaidoptionssuchasNetflixandAmazonPrimeVideo.Thistrend

20%

streamingapps.

underscoresapotentialexistentialthreattothesefreeservices,particularlyaslarger,establishedpaidTVstreamingplatformsrolloutlow-cost,ad-supportedtierswithrobustcontentlibraries.

Thisintroducesasignificantchallengeforfreeservices:Theymustretaintheirexistinguserswhilecompetingmorevigorouslytoattractusersfrompaidplatforms.Howcanthesefreeservicesdrawintheseusers?TheanswermaylieinunderstandingandleveragingtheusagehabitsofusersofpaidTVstreamingplatformsandonwhichotherappstheyarespendingtimeon.

Asshowninthefigureontheright,datafromQ12023revealsthatusersofNetflix,Disney+,andAmazonPrimeVideointheU.S.aremorelikelytoengagewithappslikeAmazonShopping,Spotify,andPinterest.Thisinsightunderscoresthepotentialforanadvertisingstrategyforfreestreamingplatforms:AcalculatedmoveforPlutoTVandTubicouldinvolvestrategicallyplacingdigitaladsonthesepopularapps,whichcouldserveasacatalysttosteertheseuserstowardstheirfreeofferings.

16%

12%

8%

4%

0%

Note:OtherTVstreamingappshavebeenexcluded

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DespiteitsEngagementDominance,NetflixStrugglestoGrowthe45+,High-Value,UserBase

Netflix'scontenthasstruckachordwiththetastesandpreferencesofthe18-24agegroupintheU.S.,establishingitsdominanceamongthisdemographic.Over22percentofNetflix'sadultusersintheU.S.

GrowthofUsersOver45YearsOldforSelectTVStreamingApps

AppStoreusers,Q22023vsQ22022U.S.

40%

fallintothisagebracket,markingthehighestproportionamonglarge

TVstreamingservices.

23%

22%

Yet,thisshiftswhenitcomestotheover-45demographic.

AlthoughNetflix'sshareofusersover45alignswithotherTVstreamingplatforms,itsyear-on-yeargrowthrateinthiscohorttrailsbehindseveralcompetitors,includingDisney+andParamount+.

Giventheongoingcostoflivingcrisis,thistrendmayhavenotablerevenueimplications.Whileyoungeraudiencesmaybehighlyengaged,theirspendingandwillingnesstospendisoftenreduced

incomparisontoolderdemographics.TheslowergrowthrateamongNetflix’sover-45userscouldmeantheplatformisoverlookingalucrative,andpotentiallymorereliable,revenuestream.

Nonetheless,Netflix'sintroductionofalower-cost,ad-supportedsubscriptioncouldbeagamechanger.Thisnewtiermightnotboostthegrowthrateamongtheover-45s,but,evenifolderusersremainasmallershareoftotalusers,advertisingrevenuedrivenbyalargeroverallsubscriberbasecouldoffsetthis.

20%

15%

2% 1%

0%

-6%

-9%

-13%

-20%

-40%

10|

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Disney+LeveragedAdStrategytoShiftTowardsMatureAudiences…

Disney+enteredthestreamingmarketwithastrongfocusonfamily-friendlycontent,capitalizingonthewealthofbelovedbrandsinitsportfoliosuchasDisney,Pixar,Marvel,andStarWars.Theplatformhassincebroadeneditscontentofferingstoincludemorematurethemes,particularlyfollowingtheintroductionoftheStarlabel-acontenthubforawiderrangeofmovies,TVshows,

andoriginalproductionsfromstudioslikethe20thCenturyStudios,

Disney+NominalAdSpendbySelectChannels

Q22023,U.S.

$30M

$26M

$20M

$15M

$10M

$9M

$6M

20thTelevisionandFX.ThismovesignificantlyincreasedDisney+’s $0

$3M

$2M

appealtoolderdemographics.

AlthoughDisney+beganwithanemphasisonfamily-friendlycontent,recentdataindicatessignificantgrowthinitsuserbaseaged45andover.Thissurgeisnotmerelyabyproductofbroadappeal,butratheraconsequenceofstrategicdecisionsDisney+hasmadetosupportitsgrowth.Notably,Disney+'sdigitaladvertisingstrategyhaspivoted

Facebook Instagram Snapchat TikTok

Disney+AbsoluteAdSpendGrowthbySelectChannels

Q22023vsQ22022,U.S.

$8M

towardschannelsthatresonatemorewithanolderuserbase.

TheplatformincreasedadspendingonplatformssuchasFacebook,

Instagram,,and-whichareknowntodraw

amorematureaudience.ThisshiftstandsincontrasttoadecreaseinadspendingonplatformslikeTikTokwhichismorepopularamongyoungerusers.

$5M

$3M

$7M

$7M

$5M

$3M

$2M

Disney+’sadstrategyandtheconsiderablegrowthinthe45+userbasesuggeststheplatformmightbetryingtoreachcustomerswith

$0

moredisposableincome,animportantfactorinatimeofhighinflation.

$3M

Facebook Instagram Snapchat TikTok

11|

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…WhilePlutoisHarnessingHulu,YouTube,&TikToktoReachYoungstersandMinorities

WhilesomeTVstreamingplatformssuchasDisney+havesuccessfullydrawnanolderaudiencebyincreasinginvestmentsinadchannels

PlutoTVAdSpendGrowthbySelectChannels

Q22023vsQ22022,U.S.

200%

166%

HuluandTikTokareamongthechannelswherePlutoTV’sdigitaladinvestmentsgrewthemostinQ22023YoY.

suchasFacebookandInstagram,PlutoTVhasblazedadifferenttrail:Ithasraiseditsadinvestmentsinplatformsthataremorepopularwithyoungeraudiences.PlutoTV'sinvestmentinTikTokads,forinstance,surgedby66percentyear-over-yearinQ22023.Alongsidethis,PlutoTVhasalsoenhanceditsadspendonplatformslikeHulu.It’sworthnotingthatasofQ22023,Huluheldoneofthehighestshareofmobileusersbetween25and44amongallmajorTVstreamingplatformsintheU.S.

ThisadstrategycouldbeinterpretedasPlutoTV’sreactiontocompetitionfromotherplatformslikeNetflixandDisney+thatnowofferlower-cost,ad-supportedsubscriptions,therebypotentiallyattractingyoungerusers,butalsoasatacticalplaytolureusersfromNetflixafteritscrackdownonpasswordsharing.

Intriguingly,PlutoTV'sincreasedinvestmentinTikToktakesonanewlightwhenconsideringthatTikTokisamongthetopfiveappswhereNetflixusersintheU.S.aremostlikelytospendtimeon.ThissuggeststhatPlutoTVmaybeleveragingTikTok'spopularityamongNetflixuserstodrawaportionofthisaudiencetoitsownplatform.

Furthermore,lookingatcross-appusagedatafromNetflix,thereareseveralotherappsandplatforms,includingAmazonShoppingandSpotify,whereNetflixusersaresignificantlymorelikelytobeactive(seechartontheright).TheseplatformscouldpresentadditionalopportunitiesforPlutoTVtoreachandengagemoreNetflixusers.

100%

66%

43%

26%

0%

Hulu TikTok Facebook Instagram

NetflixUsers’LikelihoodtoUseOtherApps

Q12023,Likelihoodofusingappwithina30dayperiod

TikTokisthefifthmostlikelyapptobeused

15% byusersofNetflix.

10%

5%

0%

12|

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NetflixExcelsinRetainingUsers,FacesNewUserAcquisitionChallenges

Amongthetopstreamingapps,Netflixdemonstratesanexceptionalabilitytoretainusers,boastingthehighestretentionrateof79percent.ThisfigureunderscoresNetflix'ssuccessinkeepingexistingusersengagedandsatisfiedwithitsdiversecontentofferings.However,Netflixencounterschallengesinattractingnewuserswhencomparedtoitscompetitors.WhileHBOMax(Max),AmazonPrimeVideo,Hulu,andDisney+allachievenewuserratesofatleast7percent,Netflixfallsbehindwithanewuserrateofonly3percent.ThelowernewuserrateforNetflixmaybeattributabletomarketsaturationandaccountsharing.

Netflix'srecentcrackdownonpasswordsharinghasyieldedamodestpositiveimpactonoverallnewdownloads.Acomparisonofthefourweeksbeforeandafterthecrackdownrevealsafivepercentincrease

inoveralldownloadsforNetflix.Moreover,fromMay2023toJune2023,Netflix'snewuserrateexperiencedaslightrisefrom3percentto3.3percent.Whilethecrackdownmayhavecontributedtoaminorboostinnewuseracquisition,itsoverallimpactremainsrelativelymodest.

ImpactofPasswordSharingCrackdownonNetflixDownloads

Worldwide

+5%

12M

UserRetentionforSelectStreamingApps

Selecttopstreamingapps,GooglePlay,worldwideinQ22023

RetainedUsers NewUsers ResurrectedUsers

12.8M

79%

3%

19%

71%

8%

21%

71%

7%

23%

69%

8%

24%

65%

7%

27%

6M

0M

4weeksbeforecrackdownonpasswordsharing

13.4M

4weeksaftercrackdownonpasswordsharing

0% 20% 40% 60% 80% 100%

Note:Resurrectedusersareuserswhowereinactiveinthepreviousmonthbuthaveresumedusingtheappinthefollowingmonth.

13|

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Disney+’sChurnRateHasBeenFallingAmidIncreasein45+Users

ChangeinChurnRatesforSelectStreamingAppsRelativetoMay2020

GooglePlay,May2020baseline,Worldwide

Disney+'sreductioninuserchurnsince2020-auniquetrendamongmajorTVstreamingapps-signalsitssuccessinretainingitsuserbase.Thiscouldpotentiallybeattributedtoitsexpandedcontentofferingsthatcatertoawiderangeofviewerinterests.Theplatform'sstrategicfocusonthe45+demographic,agroupthatisoftenperceivedasbeingmorebrandloyal,mighthavealsoplayedaroleinthisachievement.Conversely,Netflix,whilestillmaintainingthelowestoverallchurnrateamongleadingTVstreamingplatforms

(seechartbelow),hasexperiencedanupwardtrendinchurnsince2020,withanotableincreaseoverthepastyear.

50%

Netflix

25%

AmazonPrimeVideo

0%

ChurnRatesforSelectStreamingApps

Q22023,GooglePlay,worldwide

Disney+

40%

-25%

30.8% 30.8%

20%

22.1%

0%

AmazonPrimeVideo Disney+ Netflix

-50%

14|

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Disney+StrugglesasTopAlternativeforNetflixandAmazonPrimeVideoUsers

AmazonPrimeVideoandNetflixUsers’LikelihoodofUsingOtherStreamingAppsDuringtheSameMonth

Q12023,worldwide.GooglePlay

Lookingatthecross-appusageofNetflixusers,AmazonPrimeVideoemergesastheTVstreamingplatformtheyaremostlikelytouseintandemwithNetflix.ThispatternisconsistentacrossseveralWesterncountries,includingtheU.S.andtheU.K.

Interestingly,thistrendisalsomirroredamongAmazonPrimeVideousers,whoshowanotableoverlapwithNetflix,indicatingitastheirpreferredsupplementarystreamingservice.Netflixusers'cross-useofAmazonPrimeVideoislesspronouncedthanthereversescenario.ThiscouldbeinterpretedasasignofhigherloyaltyamongNetflixusers,possiblyduetoNetflix'sbroadanddiversecontentofferingsthatkeepitsusersengagedandreducetheirinclinationtoseek

Whichisthealternativestreamingapp

Netflix’susersaremostlikelytouse?

50%

Whichisthealternativestreamingapp

AmazonPrimeVideo’susersaremostlikelytouse?

50%

NetflixisthemostpopularappforAmazonPrimeVideoUsersacrossanumberofcountries

contentonotherstreamingplatforms.

Inarevealingtwist,Disney+doesnotemergeasthetopalternativechoiceamongusersofNetflixorAmazonPrimeVideoacrossthesecountries.ThisunderlinesDisney+'suniquepositioninthestreamingmarket.Eventhoughitissuccessfulinitsownright,itdoesnotappeartobethego-tosecondarychoiceforusersengagedwithothermajorstreamingservices.

25%

AmazonPrimeVideoemergesasthemost likelychoiceforNetflixusersacrossseveralmarkets

25%

0%

US UK Germany France Italy Canada

0%

US UK Germany France Italy Canada

15|

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DisneyPlus’‘OneAppExperience’withHuluCouldWeakenNetflix’sDominanceintheU.S.

Bytheendof2023,Disneyplanstomergeitstwopopularstreamingplatforms,Disney+andHulu,intoasinglemobileappfortheU.S.market.This'oneappexperience'couldbeasignificantgame-changer,potentiallyboostingusernumbers,increasingengagement,andpavingthewayfornewadrevenuestreams.Interestingly,HulucurrentlyoutperformsDisney+intermsofuserengagementintheU.S.,withusersspendingover80minutesperweekontheplatforminQ22023.

Theproposed'oneapp'strategycouldamplifyuserengagement

WeeklyTimeSpentonSelectTVStreamingApps

GooglePlay,U.S.

160

120

Netflix

byofferingabroaderrangeofcontentunderasingleumbrella.Thisstrategycouldnotonlyattractalargeruserbasebutalsoextendtheirdurationofstayontheplatform.Moreover,increaseduserengagementcouldopenupuntappedopportunitiesforadmonetization,wherealargerandmorediverseuserbaseleadstoasurgeinadimpressionsandpotentiallysubstantialboostsinad