Global Streaming Market Faces Turbulence Amid Subscriber Shake-Ups
Simon-Kucher’s 2024 Global Streaming Study reveals that streaming services face unprecedented demand for unique content opportunities
[Singapore, July 18, 2024] – Simon-Kucher, a leading global growth consultancy, has released its 2024 Global Streaming Study. Showing increased screentime and more subscriptions per user, the study finds that the global streaming market remains strong. Significant shifts are visible in subscription dynamics and content preferences.
“Streaming is at a fascinating crossroads,” said Lisa Jaeger, Managing Partner of Technology, Media & Telecom at Simon-Kucher. “Number of subscriptions per person increased by 32 percent but budgets remained flat. While there’s still appetite for streaming services, a significant share of subscribers feel that they spend too much on streaming and that they have too many streaming subscriptions. Despite slower growth, the increase in paid subscriptions and demand for unique content creates a real opportunity for providers to innovate and differentiate themselves.”
Key Findings:
Growth Trends:
- The global streaming market is still expanding, but at a slower pace. Four percent fewer users are increasing their streaming consumption compared to last year’s study.
- Streaming consumption in Asia has remained stagnant compared to last year’s study.
- In Singapore, there has been a four percent decrease in users increasing their streaming consumption compared to last year’s study.
- Paid subscriptions now account for 50 percent of streaming time. This is up by eight percentage points from last year. Use of free online services has decreased by six percentage points.
- Free online services dominate the Asian markets, constituting 40 percent of streaming time, which is the highest in relative to other continents.
- Despite Singapore having the highest usage of paid subscriptions in Asia, it still lags behind other countries on other continents in this regard.
- Globally, 39 percent of subscribers plans to cancel at least one subscription in the next 12 months. More than half of respondents who intend to churn gave a content-related reason.
- Asia exhibits the highest percentage of subscribers intending to cancel at least one subscription in the next 12 months, at 43 percent, compared to the global average of 39 percent. This marks a ten-percentage point increase from last year, primarily driven by China.
- In Singapore, 40 percent of subscribers plan to cancel at least one subscription in the next 12 months. This is up by one percentage point from last year.
Social Media Impact:
- 34 percent of respondents replace potential streaming time with social media. This rises to 44 percent among 18 – 39-year-olds.
- Asia leads in the percentage of respondents who allocate potential streaming time to social media, with 46 percent, driven primarily by China (57 percent) and Singapore (51 percent).
- When it comes to the appeal of social media, short-form content is streaming’s biggest competitor -- more than 40 percent of respondents say they find it as entertaining as streaming series/movies.
Subscription Dynamics:
- The average number of streaming subscriptions per person rose from 2.4 to 3. Part of this rise is likely the result of password-sharing restrictions implemented by major players like Netflix and Disney+.
- Asia has experienced the highest growth (101 percent year-over-year compared to 2023) in the average number of streaming subscriptions per person, increasing from 1.4 to 2.9.
- Singapore saw its average number of streaming subscriptions per person rise from 1.9 to 3.0, growing 62 percent year-of-year compared to 2023.
- ‘Subscription fatigue’ is significant, as 40 percent of subscribers feel that they have too many subscriptions. This is especially significant with streamers in the US, Mexico, Australia, Sweden, and Singapore being particularly vocal about how they spend too much money with too many streaming providers.
Market Differentiation:
- Broad content selection remains the most important value driver.
- The major international streaming providers are perceived similarly in value and price. Content can provide a competitive edge and serve as a primary differentiator for providers."
Commercial Levers:
- There has been significant growth in the number of subscribers on ad supported packages, and there is scope to optimize how advertising is served to subscribers on these packs. Additionally, ad supported packages remain an effective lever to prevent churn of price sensitive subscribers, even more so when advertisements are personalized.
- Adding gaming to streaming packages shows potential, especially in markets like China, Brazil, and Singapore.
- Bundling streaming services is an effective strategy given the lower individual budgets per subscription.
“The streaming landscape is continuously evolving, and content remains the primary differentiator,” added Jaeger. “Providers must strategically adapt to these trends. They need robust content offerings capitalizing on new commercial levers to stay competitive and cater to shifting consumer preferences.”
Complete study findings are available upon request, including country splits.
*About the Study: The Global Streaming Study 2024 was conducted April - May 2024 by the global consultancy Simon-Kucher. More than 12,000 consumers from across 12 countries (Australia, Brazil, China, Germany, Japan, Mexico, Netherlands, Singapore, Spain, Sweden, UK, US) were surveyed on their streaming behaviors and preferences.
Rachel Pope
rachel.pope@simon-kucher.com
Simon-Kucher is a global consultancy with more than 2,000 employees in 30 countries. Our sole focus is on unlocking better growth that drives measurable revenue and profit for our clients. We achieve this by optimizing every lever of their commercial strategy – product, price, innovation, marketing, and sales – based on deep insights into what customers want and value. With nearly 40 years of experience in monetization topics of all kinds, we are regarded as the world’s leading pricing and growth specialist.
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