Netflix earnings: Disney and Warner Bros. Discovery, not Fortnite and Sleep, are the competition [Parrot Analytics]

Netflix earnings: Disney and Warner Bros. Discovery, not Fortnite and Sleep, are the competition [Parrot Analytics]


While Netflix claims to be competing against Fortnite and Sleep, new data from Parrot Analytics reveals that the streaming giant’s main enemies in the race for entertainment supremacy are its legacy media opposition, especially Disney and the newly formed Warner Bros. Discovery.

Netflix’s share of demand for streaming originals hit new lows again in Q1 2022, standing at 45.2% globally (vs. 45.4% in Q4 2021) and 42. 4% in the United States (vs. 43.6% in the fourth quarter of 2021). Meanwhile, HBO Max, Paramount+ and Disney+, all SVODs backed by traditional media conglomerates, made significant gains in the latest quarter.

Global demand for original content from all of Netflix’s competitors grew 80.8% between Q1 2020 and Q1 2022, more than triple the 25.5% growth of Netflix originals over the same period .

Netflix’s modest global demand growth of late has closely tracked the slowdown in subscriber growth over the same time (up 21.3% worldwide from Q1 2020 to Q4 2021), showing the critical link between demand for original content and SVOD subscriber growth.

To be clear: Netflix remains the most dominant player in the streaming industry, especially in demand for original content, a key indicator of subscriber growth.

But as several nearly century-old firms erode the incumbent’s market share, Netflix is ​​reaching a point where it needs to focus more on subscriber retention, especially in North America, while competitors Disney+ and HBO Max, backed by legacy media, continues to focus on subscriber growth in key international territories.

Global Demand for Original Content: Netflix vs. Competitors

  • From Q1 2020 to Q1 2022, total global demand for Netflix originals increased 25.5%, while global demand for originals from all other streamers combined grew 80.8%, more than triple the growth of Netflix.
  • Netflix’s slowdown in demand growth for its original content is apparently directly related to its slowdown in subscriber growth over the past two years.
  • From Q1 2020 to Q4 2021, Netflix’s global subscribers increased from approximately 183 million to 222 million, a 21.3% increase in total subscribers. This is remarkably similar to the 22.8% growth in total global demand for Netflix originals from Q1 2020 to Q4 2021, showing the key link between original content demand and subscriber growth. .
  • The gap between the growth in demand for original content from Netflix’s competitors and its own is further evidenced by the dramatic drop in Netflix’s market share over the past two years: from 55.7% to 45.2%. % globally and from 52.4% to 42.2% in the US Q1 2020 and Q1 2022.

Global Streaming Originals Demand Share: Q1 2020-Q1 2022

  • Netflix’s global demand share for streaming originals stood at 45.2% in Q1 2022, an all-time low, but only a slight decrease from Q4 2021 (45.4%).
  • However, Netflix dropped from 50.2% in the first quarter of 2021 and from 55.7% in the first quarter of 2020.
  • Disney+ and HBO Max have grown from a combined 6.7% share in the second quarter of 2020 (the first quarter both were available) to 15.5% in the first quarter of 2022.
  • That 8.8 percentage point gain from these Disney and Warner Bros. Discovery-owned streamers accounts for the vast majority of the 9.8 percentage point drop Netflix has had over the same time period, showing just how much these streaming companies Traditional media is directly consuming Netflix’s streaming dominance. .

Global Streaming Originals Share: Q1 2022

  • Netflix remains the dominant service for original content demand with a global share of 45.2%. Its demand share of 45.2% remains higher than that of its six closest competitors combined: Amazon Prime Video, Disney+, HBO Max, Apple TV+, Hulu and Paramount+ account for a total share of 42.4% globally.
  • That said, its competitors are catching up: In Q2 2020 (HBO Max’s launch quarter), Netflix’s six closest competitors combined for a 33.4% global demand share, while Netflix remained at 55%.
  • HBO Max (6.7%) outpaced Apple TV+ (6%) this quarter as demand for ted lasso faded as Max released a trio of original hits aimed at significantly different audiences with
    station eleven, PacifierY Our flag means death.

United States Streaming Originals Share – Q1 2022

  • Netflix had a steeper drop with US consumers, dropping from 43.6% in Q4 2021 to 42.4% in Q1 2022. Netflix’s US share was 48.1% in the first quarter of 2021 and 52.4% in the first quarter of 2020.
  • Paramount+ and HBO Max had very strong quarters in the US and accounted for much of Netflix’s demand share losses in the first quarter of 2022.
  • HBO Max grew from 6.2% to 6.9% and overtook Apple TV+ in the category with hits like
    Our flag means death, Pacifier Y
    station eleven
    .
  • Paramount+ grew from 4.4% to 5% thanks to yellow stone cleave 1883as well as a new season of Star Trek: Picard.

Demand share on the platform: first quarter of 2022

  • Netflix is ​​doing well in sharing demand on the platform, especially considering that a plurality of demand for content available on Hulu is non-exclusive licensed content, which has less of an impact on subscriber growth and retention.
  • While there is currently a significant drop from second to third place in demand on the platform with US audiences, a combination of HBO Max and Discovery+, which Warner Bros. Discovery leadership has repeatedly emphasized is in process, would represent 18.3% participation. just 0.4 percentage points behind Netflix.
  • This looming combination of platforms represents a strong competitor to Netflix for second place in demand share on the platform, demonstrating the direct threat that Warner Bros. Discovery poses to Netflix’s control over the entertainment habits of tens of millions of people. American consumers.

Most Requested Streaming Originals – Global, Q1 2022

  • As we’ve established above, demand for original content is a key leading indicator of subscriber growth. For this reason, it is important to highlight the programs that have generated the most demand from the public.
  • Disney+ boba fett book narrowly beat Netflix The Wizardwhich debuted at the end of December 2021, as the most demanded series worldwide in the first quarter of 2022 (no doubt significantly boosted by the appearances of Mandalorian and Baby Yoda).
  • Netflix accounted for four of the top ten streaming originals with global audiences for the quarter, tied with Disney+, which also had four.
  • While that’s a solid showing, it still represents a significant decline from recent times. Just last quarter, Netflix had four of the top five global originals, and in the first quarter of 2021, Netflix accounted for seven of the world’s top ten originals.
  • Once again, competition from traditional media — Disney+ in this case — is affecting core areas of Netflix’s streaming dominance.

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