The 2022 TV panorama was outlined by worldwide enlargement, mergers, acquisitions and content material explosions (and reductions). With a tough first half of the 12 months for most of the greatest companies available on the market, there was a definite shift in priorities away from subscriber development and towards income development.
As a part of Adweek’s year-in-review protection, we took a deep dive into the foremost streaming companies, how they evaluate on the finish of the 12 months and what 2023 may convey.
Listed below are our greatest takeaways from the state of streaming on the finish of 2022.
Disney blazes the way in which
Although Netflix remains to be the world’s largest streaming service, Disney is racing to the highest. Mixed, the Disney bundle (Disney+, Hulu and ESPN+) reached 235 million subscriptions globally on the finish of its fiscal fourth quarter—an addition of 61 million in a 12 months.
The corporate’s flagship streamer Disney+ climbed to 164.2 million subscribers, up from the 118.1 million it had on the finish of 2021. Hulu and ESPN+ have 47.2 million and 24.3 million subscribers, respectively, and people companies are solely accessible within the U.S.
However regardless of Disney’s fast direct-to-consumer development, not all was easy crusing on the Home of Mouse in 2022. The corporate’s DTC sector misplaced $1.5 billion in income final quarter—and $4 billion over the past 12 months. Most of these losses got here from Disney+, spooking buyers and the board alike and prompting the ousting of CEO Bob Chapek and the return of Bob Iger.
In early December, the corporate launched Disney+ Fundamental—a $7.99 per 30 days ad-supported providing (at present solely accessible within the U.S.)—with the hopes {that a} lower-priced tier will usher in additional income from each advertisers and subscribers who may be drawn to a less expensive choice.
Netflix’s 2022 struggles
Whereas Disney+’s numbers climbed, Netflix’s waned. Within the first quarter of 2022, not solely did Netflix lose subscribers for the primary time since 2011, it missed its projected 2.5 million web provides. Furthermore, it worsened within the second quarter, with Netflix shedding practically a million paying prospects.
After years of steadfast refusal, the corporate shocked the business in April when it introduced it could add an ad-supported tier. Netflix launched Fundamental with Advertisements in November, solely six months after the corporate first talked about an providing. The brand new Netflix product beat Disney+ Fundamental to market by one month.
Issues circled for the streaming service within the second half of the 12 months, because it added 2.4 million subscribers to succeed in 223.09 international prospects. The streamer completed with 214 million in 2021. As for the long run, Netflix is trying to develop its AVOD tier, add promoting capabilities and crack down on password sharing in 2023.
HBO Max makes adjustments FAST
On the finish of 2021, we considered HBO Max as one of many fastest-growing streaming companies forward of WarnerMedia’s deliberate merger with Discovery. However now, months after the formation of Warner Bros. Discovery, we’re left with extra questions than solutions.
CEO David Zaslav has now chosen to not get away separate subscriber numbers between HBO Max and Discovery+. Mixed, the companies have 94.9 million international subscribers, with robust development boosted by well-liked content material equivalent to Home of the Dragon and The White Lotus. These platforms will merge right into a single service by the spring. HBO and HBO Max final reported numbers with out Discovery+ within the first quarter, and had reached 76.8 million subscribers.
Issues will probably look very completely different at WBD within the subsequent few months as Zaslav works to focus on $3.5 billion in cost-saving synergies. That’s led to the cancelation of well-liked exhibits equivalent to Westworld, Gordita Chronicles and The Time Traveler’s Spouse—and their full elimination from the platform.
Whereas the 81 titles eliminated (to date) may discover a new dwelling on FAST, the destiny of many exhibits stays unsure.
Mountains of development
It’s been an explosive 12 months for Paramount+. Because the streamer rebranded from CBS All Entry final 12 months, it broke out separate subscriber numbers for the primary time. Paramount+ started the 12 months with 32.8 million subscribers and is heading into 2023 with 46 million.
For comparability, on the finish of 2020, all of ViacomCBS’ streaming companies (CBS All Entry, Showtime, BET+ and others) mixed for 17.9 million subscribers. Now, Paramount has climbed to just about 67 million international direct-to-consumer subscribers.
The rumor is that Showtime and Paramount+ might mix right into a single service subsequent 12 months. The corporate’s already taken the primary steps, starting to bundle the 2 collectively.
Transparency is essential
A previously reticent participant, NBCUniversal modified gears this 12 months round its technique for Peacock.
The corporate shifted its focus from a free tier to its paid tier and broke out subscriber numbers for the primary time (having beforehand solely reported sign-ups).
Peacock surpassed 15 million paid customers total, with roughly 14 million further customers coming from bundled and paid choices, reaching 30 million whole prospects.
With Peacock lastly revealing its consumer numbers, we will solely hope Amazon Prime Video and Apple TV+ will observe swimsuit.
Within the three years since Apple TV+ rolled out, and with hits like Ted Lasso and Oscar-winning movies like CODA, the corporate nonetheless hasn’t launched any onerous numbers round subscribers or sign-ups.
Prime Video additionally made a splash in 2022, changing into the unique dwelling of Thursday Night time Soccer and launching the blockbuster Lord of the Rings prequel The Rings of Energy.
We all know that the general Amazon Prime service has greater than 200 million subscribers, and the corporate stated that Rings of Energy was considered by greater than 100 million individuals worldwide. However with little info on the market, it’s unclear which is the one streamer to rule all of them.
