As we enter 2023, the world of streaming services is in a very different place than it was when we moved from 2021 to 2022. For Disney, we have Bob Iger back in control and a new ad-supported tier available, but relative to other streaming services, How is Disney+ holding up?
Recently, JustWatch released some new data regarding the market shares of streaming services for the fourth quarter of 2022.
SVOD market shares in the 4th quarter of 2022
In a historic shift, Prime Video is now the market leader for SVOD in the US and now has a 1% lead on Netflix. Disney+ edged out HBO Max for third place, maintaining a 5% margin to Netflix. Apple TV+ fell 1% in Q4, and is now tied with Paramount+.
Combining both of Disney’s streaming services, Hulu and Disney+, together makes Disney the company with the largest market share, at 26%, showing why a combined platform could make it the largest streaming service in the US. With Disney set to slow down how many original series and movies it makes, especially for streaming, Marvel and Star Wars shows aren’t enough to grow Disney+.
The only question with Prime Video is how many people subscribe to Amazon Prime for other perks like free shipping, Prime games or other perks?
Market share development in 2022
Netflix has been on a downward trend throughout 2022, and Prime Video finally took the lead in Q4. Disney+ reached a plateau after a year of mostly growth, but ended the year +2% higher than it started. Apple TV+ and Paramount+ saw +1% and +3% growth respectively through 2022.
The streaming business in 2023 will continue to change, especially as streaming platforms move from focusing on getting the most subscribers to focusing on making money. Having more subscribers but losing money isn’t sustainable, so it’s unlikely we’ll see much growth in 2023, but this data shows that Disney+ needs to do something to compete with Netflix and Amazon Prime Video.
When you look at what Disney+ is putting out in the US in January, just new episodes of a few original series and little else, it’s not a huge surprise to see why Disney+ isn’t pulling in many new subscribers. Most Marvel and Star Wars fans already subscribe, and there’s very little else to entertain adults or teenagers compared to Netflix or Prime. Classic movies and family-friendly content work, but it will need more to beat the other platforms.
What do you think Disney should do to improve Disney+ in the US?