There are also signs of hard times Netflix Evercore ISI analyst Vijay Jayant reports that download activity for the streamer’s app dropped in June.
Jayant also noted that Paramount Plus downloads hit record highs in the second quarter.
Global downloads of streaming subscriptions to video-on-demand services rose 8% year over year in June, with Netflix accounting for a 28% share, followed by Disney Plus at 26% and Amazon Prime at 20%. For ad-supported VOD apps, global downloads in June were down 17% year over year, but up 2% compared to May.
MVPD virtual downloads increased 69% year over year in June and 46% over May. YouTube TV had a 46% share of downloads, followed by DirecTV Stream with 35% of downloads and fuboTV with 12% of downloads.
Based on data from Sensor Tower, Jayant said Netflix downloads in June were down 5% year over year and 2% compared to last month.
The year-over-year decline was largest in the Asia-Pacific and US-Canada regions, at 16% and 13%, respectively. Downloads grew 8% in Europe-Middle East and 1% in Latin America.
Compared to May, downloads increased 14% in the US and Canada and 1% in Europe and the Middle East, while declining in Asia Pacific and Latin America.
Netflix shocked the streaming industry by losing 200,000 subscribers in the first quarter. Its shares plummeted, and the company announced plans to limit password sharing and introduce an ad-supported tier to reignite growth.
Jayant notes that the negative app download trends are “broadly consistent with management’s comment that gross adds are stabilizing at lower levels than historically and net adds will be negatively impacted by higher churn.”
He added that monthly active users were down 5% year over year but remained flat compared to May.
Meanwhile, June downloads from Paramount Plus increased 19% year over year and 11% mom, contributing to record second-quarter download activity.
Jayant noted that since its launch in 2021, Paramount Plus has made ongoing improvements in downloads every quarter.
Paramount Plus download growth was fueled by international activity in June. It rose 37% mom in June but fell 9% domestically.
Disney Plus uploads (excluding Hotstar) accelerated in June, benefiting from new launches and the arrival of new content. Global downloads increased 29% year over year and 36% month over month. Domestic downloads were up 14% compared to May but down 10% year over year.
Disney Plus downloads grew 28% year over year for the quarter and 5% for the quarter.
Including Hotstar, Disney Plus downloads in June fell 10% year-on-year and 39% compared to May following the conclusion of the IPL Cricket League tournament in May. For the quarter, downloads increased 27% year over year and 37% compared to the first quarter.
At Warner Bros. Discovery, HBO Max downloads were down 9% compared to May but still up 26% year over year. Domestic downloads were down 53% year over year.
Discovery Plus downloads were down 3% year over year but up 10% compared to May. Q2 download activity was the lowest since the launch of Discovery Plus in Q1 2021.
“We wouldn’t be surprised if download activity weakened further, as Warner Bros. Discovery would scale back marketing spend on HBO Max ahead of the rollout of an integrated SVOD service, which we believe will happen in the first quarter of 2023 said Jayant. Paper Writer