It comes as no surprise that streaming services have been changing the way we consume entertainment and other types of content in the last few years. By now, many of us have our favorite Netflix shows, which might be original productions like Stranger Things or old classics like That ’70s Show. Not only have consumer habits changed, but also the market itself has evolved: currently, the video streaming market is one of the most valuable sectors, expected to reach $ 124.57 billion by 2025 at a global scale.
This emerging context is bringing with it a handful of new players and millions of new subscribers to these on-demand streaming services. Netflix might still play the leading role, but it is certainly no longer the one and only player to rule this market.
In the coming months we can expect Apple to take a bite out of the market with its own streaming service called Apple TV+, launching in fall of this year. Disney is also launching a streaming service in November under the name Disney+. In addition to incursions by both tech and media giants, WarnerMedia is also planning on streaming service slated for 2020, a move that will no doubt stiffen the competition even more: HBO Max. While we wait for all those exciting new streaming services, let’s take a closer look at how Netflix and other competitors performed in the last quarter.
The biggest on-demand streaming service raised $ 4.92 billion during the period from April to June, but failed to meet market expectations, which had anticipated $ 4.93 billion in revenue for Q2.
But the heaviest loss for the company headquartered in Los Gatos, California, was the decline in number of subscriptions: New members barely reached the 2.7 million figure in the second quarter, well below the previous forecast of 5 million new subscribers.
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Latin America is one of the most promising markets for the streaming giant, having reached an all-time high of 27.1 million SVOD subscribers in 2018, and the forecast that the company will hit 51 million by 2024, as reported by Business Insider. Netflix is aware of how big of an opportunity this represents and has invested resources in localization efforts, producing original shows across Brazil, Mexico, and Argentina, as well as engaging with local social media influencers to promote its content for the Latin American public.
Club de Cuervos, The Day I Met El Chapo, Edha, and 3% are among the ever-growing list of Netflix’s original productions in Latin America.
The player behind the hit The Handmaid’s Tale, Hulu has been consolidating its subscriber base, which has climbed up to 28 million users and reached twice as many U.S. subscribers in 2019’s first quarter as Netflix did.
The owner of Hulu since May, Disney has recently announced a subscription package of its streaming services, bringing together Disney+, Hulu and ESPN+. This package will be released in November, alongside with Disney+. During the Q2 alone, the studio entertainment division’s revenue grew by 33%, reaching $ 3.8 billion.
Amazon Prime Video
With more than 100 million subscribers, Prime Video didn’t appear on Amazon’s Q2 results, but the report disclosed some of the recent production successes in the entertainment platform, highlighting its Emmy nominations for Fleabag and The Marvelous Mrs. Maisel.
“Our company doesn’t embrace that strategy. We agree that it’s not a strategy for us. We know what the numbers are, and that may change over time, but right now… we’ll talk about the success of our shows and single out shows that are overperforming,” said Jennifer Salke, head of Amazon Studios, during the Television Critics Association’s summer press tour in L.A.
“We have a very unique business in the sense that our entire North Star is to entertain and delight Prime customers all over the world,” she said. “Because we are a customer-focused company, we’re constantly thinking of our customers. And our customers are global and diverse, and we will curate shows to bring to that global, diverse audience.”
And Amazon is certainly betting on this global audience for its streaming product. In June, the company announced a new office in Rio de Janeiro to Amazon Studio–the first out of the US–with the purpose of supporting all South American streaming operations, given that Amazon Prime Video has experienced a significant growth in Brazil.