Bold & Daily: Is the streaming services market profitable for big movie studios?

While Netflix has lost subscribers, Warner has lost revenue. Warner Bros. Discovery’s revenue fell in Q4 2022, missing analysts’ estimates due to a weak advertising market.

Streaming services Warner Bros Netflix

The streaming market in 2022 is entering its second phase with a lot of uncertainty. While investments in streaming services are designed to yield long-term profits, it’s unclear exactly how long this term will be – is it 5 years, 10 years, or even 20 years?

Warner Bros. Discovery reported lower-than-expected fourth-quarter revenue due to a sluggish advertising market. Still, the company streaming services, including HBO Max and Discovery+, saw a growth of 1.1M global direct-to-consumer streaming subscribers during the same quarter.

Although HBO Max is making progress in growing its user base, it is still behind other major services like Amazon Prime Video, which has 200M subscribers, and Disney+, with 129.8M subscribers. However, HBO Max is working hard to change this situation and is investing heavily in exclusive content to attract more users and differentiate itself from the competition.

In addition, the increasing competition in the streaming market is leading companies to explore new strategies to keep their users engaged and satisfied. One of the most popular strategies is the production of original content, which can attract new users and keep current ones engaged. Streaming platforms are also investing in technology to improve the user experience and make it easier and more accessible to watch content.

As the streaming industry matures, the competition in the market is increasing more and more. While established players are losing subscribers, new entrants, such as HBO Max, are expanding their audiences. In fact, HBO Max recently saw a growth of 3M users. Interestingly, this growth number is the same as Netflix’s initial projection for Q1 2022.

Streaming services Warner Bros Netflix

In 2023, a new wave of competition is expected to hit the streaming platforms that have established themselves in the Streaming market, although not yet profitable, with new goals and next steps already announced. This fierce competition may lead to greater innovation and differentiation among platforms, offering consumers more options and exclusive content.

However, as competition increases, it is also possible that some smaller and lesser-known platforms will struggle to survive while the larger ones consolidate their leadership.

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