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How Many Streaming Services is Too Many?

by Chris Dyer

February 4, 2020

With the introduction of newer streaming services such as Disney+, HBO Max, and Peacock in an already widespread field of ubiquitous offerings, are consumers bound to shift from cord-cutting to subscription-cutting?

The King Has Returned

Riding off the success of their live-action remakes of movies like The Lion King and that of recently acquired franchises, such as Marvel and Star Wars, Disney has grown to become more dominant at the box office than ever before – setting records for the highest grossing film of all time with the recent film Avengers: Endgame ($2.79 billion). Such box office successes have given the company the courage to leap into the streaming service market, offering Disney+ at a reasonable, sub-$10 price point with many of their own Disney Classics available for streaming in addition to new movies and series based on acquired properties. For instance, The Mandalorian – a Star Wars spin-off series featured on Disney+ – saw massive expansion viewership over its week-by-week release in the last week of November 2019.

The upcoming release of the HBO streaming service HBO Max is also poised to see impressive growth in subscribership after its introduction. The service will offer original properties such as Game of Thrones; content from WB, DC, TBS, CNN, Cartoon Network, Adult Swim, and TNT; and a wide swath of movie offerings.

Look Beyond What You See

The impact of services like HBO Max differs from that of Disney+. For instance, Verizon saw a fourth quarter increase from 653,000 in 2018 to 790,000 new subscribers for the same period in 2019 – the same time the company offered a free yearlong subscription to Disney+ with mobile subscriptions. With synergies like these, the movement toward multiple streaming services is expected to continue.

The main question now is: How long will it be before streaming services are managed in a manner similar to that of cable packages or other pay-as-you-go television services? Considering a big driver of streaming is consumer convenience, not long at all.

Want to Learn More About Motion Pictures & Video?

Don’t worry, we have you covered! For additional information and analysis of US industry trends, see Motion Pictures & Video: United States, a report published by the Freedonia Focus Reports division of The Freedonia Group. This report forecasts to 2023 US motion picture and video industry revenues in nominal US dollars. Total revenues are segmented by source in terms of:

  • motion picture licensing
  • television licensing
  • contract production
  • sale and rental
  • merchandise licensing
  • other revenue sources such as services to other producers and speculative production

To illustrate historical trends, total revenues, and the various segments are provided in annual series from 2008 to 2018.

Total revenues exclude those generated from post-production and exhibition activities. The production of motion pictures and videos on an independent basis is also excluded.

You can also check out some of our related reports, which include:

  • Amusement Parks: United States
  • Apparel: United States
  • Audio & Video Equipment: United States
  • Books: United States
  • Recreation: United States

About the Author

Chris Dyer is a Market Research Analyst for Freedonia Focus Reports. He holds a Master of Arts in Security Studies, and his experience as an analyst covers multiple industries.

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