2023 - Streamers Move to a Defensive Posture

 

It's no longer about increasing subscriber numbers but finding growth areas within their customer base and bolstering the brand - that is the strategy for all streamers going forward.

Here's how the top 5 content streamers will proceed in '23:

• Netflix - The King of the Hill. This juggernaut of streamers has already started the switch to less subscriber growth. It rolled out an ad-supported tier and is eliminating password sharing (but won't be too aggressive with penalizing password sharers it will use an honor system). Additionally, we will see a gaming option and a new series of workout videos are being offered as we speak.

• Disney - Will focus on brand strengthening. Disney will be reducing investment in general entertainment content and sports. Also, Disney will not be acquiring the remaining 33% ownership of Hulu from Comcast but will push negotiations into 2025.

• Warners - Their merge with Discovery Channel will be at the top of the agenda for 2023. Post-merger will require consolidation and bundling of content from their various outlets. 

• Google - Making the big bet on the NFL Sunday football is front and center at Google. Their hope is that this will be a huge winner for YouTube. Games will be available to anyone in the U.S. without the purchase of a pay-TV package. The stakes are high, as under the seven-year deal Google is paying the NFL $2 billion.

• FAST (free ad-supported TV) - CMG's pick for the fifth most important driver in streaming content. FAST will grow substantially and take viewers away from regular broadcast and cable channels. Pluto TV, Tubi, FreeVee, and Ruku will see huge gains and out-pace subscription-based services for viewers.