Why Are There So Many Streaming Services Now?
Streaming has gone through a multitude of changes over the past five to ten years. Netflix was the first to establish itself as a streaming giant. The company that started as a DVD rental business transitioned into an on-demand streaming company in 2007. The success of Netflix made countless media companies want to replicate it and launch their exclusive streaming divisions. Worldwide, there are currently more than 200 streaming services available. The expansion of the streaming marketplace has many left wondering why there are so many current offerings.
Netflix Duplication
One of the many reasons that there are numerous streaming services is that companies are attempting to achieve the level of success of Netflix. Not only was Netflix the first major on-demand streaming platform, but the company has also retained a large percentage of market shares. Netflix makes up 21 percent of the streaming market share and has an estimated annual revenue of $30 million.
Despite its substantial hold on the market, popular TV shows from other streaming platforms have diminished the number of Netflix subscribers. For instance, the streaming service Paramount Plus has an 8 percent hold on the market, a substantial leap compared to its launch numbers. Streaming services have focused energies on developing exclusive content to attract subscribers. For Paramount Plus, they increased viewership through the show “Yellowstone,” while Apple TV experienced growth because of “Ted Lasso.”
No Unified Streaming Service
Each streaming service has its own lineup of exclusive shows and original planning. Consumers may fear missing out by only using one or two streaming subscription services. For instance, Disney Plus has the rights to top intellectual properties such as “Star Wars” and “Marvel.” Customers are paying multiple streamers to access shows and movies only available on specific platforms.
With the growing number of streaming offerings, consumers have grown weary of paying multiple fees for access. According to a November 2022 survey, 69 percent of respondents feel that there are too many streamers on the market. Furthermore, 58 percent felt overwhelmed by how much content was being offered. The monthly cost is typically a strong deciding factor in choosing a streaming service. Yet, almost half of those surveyed also stated that specific shows would also determine whether they subscribe.
Rising Costs of Too Many Streaming Services
Streaming services rose in popularity as households worldwide started to participate in the trend of “cord-cutting.” Cord-cutting was a move away from traditional cable and satellite TV subscriptions. Instead of paying a high monthly cable bill, households aimed to save money by paying a low streaming service fee. However, at least 20 percent of all consumers feel they are subscribed to too many services. After adding up four or more services, users may pay more per month than a cable subscription.
During the pandemic, TV viewership numbers rose to unprecedented amounts. However, with TV viewership on the decline, there will likely be fewer streaming services on the market. Instead of large streaming service platforms, the market could see more niche options.
