Top 5 Media Landscape Insights- December

Stay on top of today’s constantly changing media environment with DirectAvenue’s Top 5 Insights. We give you specific network updates and emerging media trends in a digestible format.

December 1, 2023

1. Netflix will remain the largest platform- gaining 44 million subscribers this year. The total for Netflix is expected to reach 298 million, with Amazon projected to closely follow at 269 million. The collective global subscriptions for six prominent U.S.-based platforms — Netflix, Amazon Prime Video, Disney+, Paramount+, Max/HBO, and Apple TV+ — are predicted to surge by 195 million, representing a 26% increase from 751 million in 2023 to 946 million by 2029.
2. The video streaming market is now valued at over $500 billion-It is anticipated that the industry will continue its growth trajectory, reaching over $1.9 trillion by 2030. In 2020, Forbes estimated global online video streaming service subscriptions at 1.1 billion, a figure that has now risen to approximately 1.8 billion as of 2023. Notably, 83% of US households have at least one streaming service subscription. On average, Americans dedicate 13 hours and 11 minutes daily to digital media, with streaming video accounting for 3 hours and 6 minutes, a trend likely to intensify given consumer demand. A recent survey indicated that 72% of Americans are highly satisfied with their user experience on video streaming services.
3. Analysis of Leading Streaming Platforms- In Q1 2023, Netflix maintained its leading position among streaming platforms in the US, holding a market share of 44.21%, which is a 5.56% decrease from Q1 2022. PeacockTV, on the other hand, experienced substantial growth in market share, rising from 5.62% in Q1 2022 to 8.08% in Q1 2023, marking a 43.85% increase. Quarterly visits for Netflix, Hulu, and Disney+ declined from Q1 2022 to Q1 2023, with Netflix experiencing the most significant drop at -29.8%. Conversely, Peacock TV and Paramount Plus observed an uptick in quarterly visits during the same period.
4. Global Ad Spend Forecast, CTV-  In 2023, global advertising revenue, excluding political advertising, experienced a 5.8% growth, totaling $889 billion, aligning closely with the projected 5.9% growth. The growth of digital ad revenue is expected to slow down to 7.3% in 2024, reaching $662.2 billion. However, steady gains are anticipated, and by 2028, the figures are expected to continue increasing. Platforms like Amazon Prime Video (with Thursday Night Football), YouTube (featuring Sunday Night Football), Max (introducing a live sports tier in October covering MLB, NBA, NHL, NCAA, and US soccer games), and Peacock (offering a diverse range from WWE matches to IndyCar racing to the 2024 Olympics) are entering the live sports arena. This move is aimed at attracting subscribers and reducing customer turnover.
5. A less mainstream sport is poised to gain widespread popularity in 2024- Significant changes are occurring in the realm of sports marketing. While tier-one sporting events like the Olympics and World Cup soccer have traditionally been highly sought-after advertising opportunities for major advertisers, they are rare occurrences with limited advertising slots demanding high prices and sponsorships secured well in advance. More than ever, advertisers should recognize the influence of marketing on sports enthusiasts.