April 19, 2022
Netflix’s demand share of streaming originals once again hit new lows in Q1 2022, sitting at 45.2% globally (down from 45.4% in Q4 2021) and 42.4% in the United States (down from 43.6% in Q4 2021), according to Parrot Analytics.
Meanwhile HBO Max, Paramount+ and Disney+ — all SVODs backed by traditional media conglomerates — saw significant gains in the most recent quarter.
Global demand for original content from all of Netflix’s competitors grew 80.8% between Q1 2020 and Q1 2022, more than triple the 25.5% growth for Netflix originals over the same time, according to Parrot.
From Q1 2020 to Q4 2021, Netflix’s global subscribers grew from roughly 183 million to 222 million, a 21.3% increase in total subscribers. This is remarkably similar to the 22.8% growth in total demand global for Netflix originals from Q1 2020 to Q4 2021, showing the key link between demand for original content and subscriber growth, according to Parrot.
The gap between the growth in demand for Netflix’s competitors’ original content and its own is further evidenced in Netflix’s market share dropping dramatically in the past two years — from 55.7% to 45.2% globally, and from 52.4% to 42.2% in the United States between Q1 2020 and Q1 2022.
Netflix’s global demand share for streaming originals is down from 50.2% in Q1 2021 and 55.7% in Q1 2020. Disney+ and HBO Max have grown from a combined 6.7% share in Q2 2020 (the first quarter they were both available) to 15.5% in Q1 2022. That 8.8 percentage point gain from these Disney and Warner Bros. Discovery owned streamers accounts for the vast majority of the 9.8 percentage point drop that Netflix has taken over the same time period, showing how much these traditional media companies are directly eating into Netflix’s streaming dominance, according to Parrot.
Netflix remains the dominant service for original content demand with its 45.2% global share, which is still larger than that of its six closest competitors combined — Amazon Prime Video, Disney+, HBO Max, Apple TV+, Hulu and Paramount+, which make up a total of 42.4% share globally. That said, its competitors are catching up — in Q2 2020 (HBO Max’s launch quarter), Netflix’s six closest competitors combined for 33.4% global demand share, while Netflix stood as 55%. HBO Max (6.7%) jumped ahead of Apple TV+ (6%) this quarter, as demand for “Ted Lasso” faded while Max launched a trio of hit originals targeting significantly different audience sectors with “Station Eleven,” “Peacemaker” and “Our Flag Means Death,” according to Parrot.
Netflix had a steeper decline with U.S. consumers, dropping from 43.6% in Q4 2021 to 42.4% in Q1 2022. Netflix’s U.S. share was 48.1% in Q1 2021 and 52.4% in Q1 2020. Paramount+ and HBO Max had very strong quarters in the United States, and accounted for much of Netflix’s losses in demand share in Q1 2022. HBO Max grew from 6.2% to 6.9%, and overtook Apple TV+ in the category with a hits such as “Our Flag Means Death,” “Peacemaker” and “Station Eleven.” Paramount+ grew from 4.4% to 5% on the back of “Yellowstone” spin-off “1883,” as well as a new season of “Star Trek: Picard.”
Netflix is doing well in on-platform demand share, especially considering a plurality of demand for content available on Hulu is non-exclusive licensed content, which has less of an impact on subscriber growth and retention, according to Parrot. While there is currently a major drop from second to third place in HBO Max on-platform demand with U.S. audiences, a combination of HBO Max and Discovery+, which Warner Bros. Discovery leadership has repeatedly emphasized is in the works, would make up 18.3% share, just 0.4 percentage points behind Netflix. “This imminent platform combination represents a strong competitor to Netflix for second place in on-platform demand share, showing how much of a direct threat Warner Bros. Discovery poses to Netflix’s grasp on the entertainment habits of tens of millions of American consumers,” according to Parrot.
Disney+’s “The Book of Boba Fett” narrowly beat out Netflix’s “The Witcher,” both of which debuted in late December 2021, as the most globally in-demand series in Q1 2022. Netflix did account for four of the top 10 streaming originals with global audiences for the quarter, tied with Disney+, which also had four. While that is a strong showing, it still represents a significant decline from recent times. Just last quarter Netflix had four of the top five global originals, and in Q1 2021 Netflix accounted for seven of the top 10 originals worldwide. Once again, competition from traditional media — Disney+ in this case — is cutting into Netflix’s core areas of streaming dominance, according to Parrot.