US video streaming market growth stalls | Media Analysis | Business | News | Rapid TV News
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Research from Kantar examining streaming in the US in the first quarter of 2022 has revealed a market continuing to evolve with Peacock, HBOMax and Paramount+ seeing growth, while Netflix struggled in the first quarter.
Kantar US streaming 27April2022
The Entertainment on Demand report found the proportion of US households who have video streaming services has stalled at 86%, actually up 0.4% points quarter-on-quarter, after seeing substantial growth in the last quarter of 2021. This means as of March 2022 there were now 110.2 million US households accessing streaming services.

Yet while Kantar discovered a flat market overall, it identified marked growth differences across the streaming tiers. Subscription video-on-demand fells 0.2 percentage points to total 81.4% household penetration while AVOD grew by 2.2 percentage points to 20.2%. FAST (free, ad supported streaming) grew by 0.9 percentage points to 25.3%.

While AVOD and FAST streaming continued to grow in their quarter, their growth slowed compared with their rapid growth in previous quarters. Live Pay-TV was also flat, continuing to have 60% of US household penetration. In all, 8% of US households accessed a new service in Q1 22, down from 9% in Q4 21. Amazon Prime Video is the #1 destination for new SVOD subscribers for the fourth consecutive quarter, but its share is down 3% points quarter-on-quarter. HBO Max and Paramount+ saw the greatest rise in share of new subscribers up to 12% and 9% respectively.

By contrast, Netflix subscribers continue to shrink for the fifth consecutive quarter, seeing a decline in household penetration of 0.2 percentage points quarter-on-quarter. This is a decline of 4% points year-on-year. Yet even at a time when total SVOD was flat, content is still helping drive growth. Titles like 1883 on Paramount+, The Mandalorian on Disney+ and Ted Lasso on Apple TV+ was shown to be driving content-based sign up.

Another key trend revealed was that overall the US may have reached peak stacking. The average household is accessing 4.7 services, unchanged quarter-on-quarter.

In its study, Kantar said the market should expect to see a greater rate of churn and switching as consumers are more selective about what they watch. It added that for streaming platforms, now was the time to ensure they keep streamers engaged after they finish a piece of content through their easily navigable interface and content recommendations. It also expected to see more value-driven price points to prevent cancellations, like Netflix’s consideration of a more affordable, ad-based option, and that despite challenges, US streamers were not leaving the streaming category.

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