22 Dec After the “Great Netflix Correction”, Streaming Looks To Find New Pragmatic Footing [Deadline]
BY DADE HAYES AND KATIE CAMPIONE
December 22, 2023 | After last year’s Great Netflix Correction, the streaming sector in 2023 entered a decidedly more pragmatic phase.
As viewers continued to cut the pay-TV cord and increasingly look to streaming as their primary source of entertainment, subscriber levels stabilized and Netflix returned to its leadership perch after last year’s scare. Profitability for all players has become the new North Star. Top-line growth is always welcome, but Disney CEO Bob Iger spoke for many last February when he said the company had become “intoxicated” by the early gains by Disney+ and had therefore mismanaged its streaming business.
This year, the priority for many players (especially those outside of the fuzzy-math realm of Big Tech) became declaring that “peak losses” had been achieved and a path to success had been identified. One way for companies to relieve pressure on subscription revenue turned out to be as old as the living-room box itself: selling time to sponsors. Advertising-supported services, initially on the periphery of the business and seen as a somewhat down-market form of streaming, got a boost with Netflix and Disney rolling out ad tiers introduced at the end of 2022. Prime Video is set to join the ad ranks in 2024 and rumors persist about Apple TV+ possibly following suit, especially now that it has nearly doubled its monthly subscription price to $10 a month.
Read more on Deadline.