The subscription video on-demand (SVOD) streaming landscape is becoming increasingly crowded with big brand names. It started with the pioneering innovators like Netflix, Amazon Prime, and Hulu. But recently a new crop of media giants is joining the fray. Disney+ and Apple TV+ launched late in 2019, and two new entrants are—Comcast’s Peacock and AT&T’s HBO Max.
Time will tell how much the newcomers will disrupt the top-two streaming picks, Netflix and Hulu. In Netflix’s reported fiscal 2019 fourth quarter results, US subscriber growth fell about 180,000 short of their forecast. Yet, Netflix gained an impressive 1.3 million more international subscribers. For another positive indicator, research from the NPD Group found that in 2019 Netflix and Hulu’s weekly viewing hours rose 7%, growing to 4 hours 6 minutes, which amounts to 20 minutes more streamed TV content per week than in 2018.
Big media companies joining the streaming marketplace
Driving Disney+’s impressive launch are the subscribers drawn to its family-friendly and nostalgic media library. While smaller than Netflix’s, it contains films like Star Wars, Disney favorites like Finding Nemo, and The Simpsons to name a few. It’s estimated that Disney+ signed up 24-million US subscribers in November of last year.
Apple is in a unique position among its newly acquired competitors by virtue of its multi-faceted, if not confusing, various offerings. There’s the Apple app for iPhones and Macs, which is a hub for video entertainment and includes its own iTunes rentals. There’s the very recognizable Apple TV set-top box. And then there’s the newly launched Apple TV+, which is a paid service with Apple-exclusive video entertainment on multiple platforms, including Roku. While so far Apple TV+ includes a handful of original shows that haven’t been met with overwhelming recognition from the likes of the Golden Globes or the Screen Actors Guild, they can boast of signing up 33 million customers.
With AT&T’s HBO Max offering, existing HBO subscribers on AT&T (approximately 10 million) and HBO Now direct billing subscribers will get HBO Max for free. And customers who subscribe to AT&T’s premium video, mobile, and broadband packages will be offered bundles at launch with HBO Max at no additional cost as reported by Variety.
Confident of their ability to harness the current wave of streaming growth, HBO Max is projecting that by 2025 they’ll have 50 million US subscribers, and between 75 to 90 million global customers.
Comcast’s Peacock is also entering the US market this spring. According to a December 20 CNBC report, “Users will be greeted by streaming content, similar to turning on traditional television, according to people familiar with the matter. The showcased video could be a live offering from NBC News Now, NBC’s free streaming news service that will integrate with Peacock, or an on-demand show.”
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