According to research companies, MoffettNathanson LLC and HarrisX, in 2020, there was a sharp increase in the number of subscribers of the largest streaming services in the United States. The indicator may be more than 50% compared to 2019.
Analysts forecast fierce competition between streaming platforms at the beginning of 2021. They would compete for subscribers due to the influx of new players to the market. However, companies did not follow this scenario, remaining content with the current strong demand amid restrictions due to the coronavirus pandemic.
Dritan Nishe, the CEO of Harris, stressed that instead of a war between the streaming companies, there was peaceful coexistence and parallel growth. New services, such as Disney+, also reported strong results. At the same time, the new platform did not sour demand for such popular streaming platforms as Netflix Inc. and Hulu.
Notably, Disney+ is on the list of numerous platforms that appeared a little more than a year ago. The service was launched in November 2019, and two other major players in the entertainment market, HBO Max and Peacock, entered the market a few months ago.
According to analysts, the new streaming platforms did not somehow affect the work of Netflix and other popular services. The leaders of the entertainment market continued to increase the number of subscribers at a steady pace. At the same time, traditional pay-TV service providers have lost many users. Since mid-2018, more than 1 million subscribers have refused to use the services provided by satellite and cable TV companies. Experts believe that this trend will continue in 2021.
Additionally, they note that Netflix managed to gain leadership during the COVID-19 pandemic thanks to an extensive digital film library and original content. Unlike its competitors, the new popular service's products appeared without delays caused by the pandemic, which helped attract new subscribers.
According to a study conducted by Parks Associates, about 60% of American households currently use Netflix. The company has a number of advantages over most competitors. Lockdowns introduced to curb COVID-19 contributed to the increased popularity of Netflix.
When millions of Americans were forced to work remotely and study at home, they had more time to watch movies. Apart from that, theaters, museums, and cinemas were closed. Therefore, demand for the streaming services was buoyant.