U.S. households stopped adding to their roster of streaming services, in another sign that the on-demand video market has reached saturation point.
The number of on-demand services accessed per household leveled off at 4.7, according to a quarterly survey from research company Kantar, after almost two years of constant increases alongside new service launches.
The last week saw Netflix Inc. stock routed after a shock loss in subscribers. Meanwhile CNN abruptly axed its standalone service CNN+ after just a month following the completion of the Warner Brothers Discovery Inc. merger.
“Expect to see a greater rate of churn and switching as consumers are more selective about what they watch,” the report said. “It may be more challenging for newer entrants in the market, like CNN+, who will have a hard time justifying their value within the already saturated market.”
Analysts have been cutting their share price targets in the big streaming platforms after the warning from Netflix.
“We think catalysts for streaming remain elusive, notwithstanding some continued stabilization of Disney+ subscribers,” said Daniel Salmon, analyst at BMO Capital Markets. Bloomberg