Netflix loses less subscribers, but projects gains
Netflix reported subscriber losses of 970,000 in Q2 2022, far less than the two million they forecasted, while projecting adding another one million subscribers in Q3. Netflix's biggest subscriber loss came from the U.S and Canada, which was offset by increased subscriptions elsewhere. The latest season of Stranger Things most likely helped the Netflix subscriber count from falling further. In its first four weeks, the sci-fi series generated 1.3 billion hours viewed, making it their biggest season of TV ever. Netflix also has plans to clamp down on password sharing which effects 100 million households that are currently not directly paying for Netflix.
The NPD Take:
- The upcoming AVOD plan (expected to launch early 2023) is aimed at keeping cost conscious subscribers and reducing churn.
- It’s finally time for the company to find a way to monetize password sharing. Easier said, then done as the risk for subscriber loss is high.
ESPN+ raises prices
ESPN+ will be raising the price of the standalone service on August 23. The monthly subscription spikes $3 from $6.99 to $9.99/month, a sizable 43% hike. The annual price rises from $69.99 to $99.99. Notably, the $13.99 monthly price of the Disney Bundle, which packages ESPN+ with Disney+ and Hulu, remains unchanged. Disney will be adding an exclusive NFL game each season to ESPN+ while also launching a documentary series including Man in the Arena: Tom Brady and the Derek Jeter-themed The Captain.
The NPD Take:
- This is another sign of content distributors focusing on the bundle, making it rather unattractive to stay with the stand-alone offering.
- ESPN+ will become a staple of the Disney service offering as more in-market, game day content is procured.
Amazon Prime Video unveils app upgrade
Amazon Prime Video is redesigning its app, with vast improvements in navigation and user experience. Users will find a primary navigation menu (vertically oriented and found on the left side of the page), directing them to six key landing destinations: Home, Store, Find, Live, Free with ads, and My Stuff. Prime users will be able to see more clearly what shows and movies are part of the Prime Video menu, which go into the Freevee bucket, and which titles require a rental/sales fee, or an Amazon Prime Video Channels subscription. Navigation to live TV is also now a priority. The upgrade is rolling out this summer to Amazon Fire TV and Roku, and Android mobile devices. (Apple iOS mobile devices and the web will follow after that.)
The NPD Take:
- It took a while, but the app overhaul will provide relief for frustrated users who have trouble weeding through content overload.
- The UI, now similar to others like Netflix, is bringing more uniformity to streaming video.