March 10, 2021
Netflix invented the subscription streaming video market in 2008. Thirteen years later the SVOD behemoth still dominates consumer spending on streaming video in the U.S., according to new data from eMarketer.
The research firm says Netflix, Disney and YouTube are the biggest benefactors of consumer spending on over-the-top video. In 2021, just under one-third (30.8%) of all U.S. OTT subscription revenue will go to Netflix. Disney will account for about one-fourth (25.9%) of SVOD revenue, and YouTube will account for 13.2%.
The research firm says Netflix’s share of total OTT subscription revenues is declining, which is as a result of increased competition and market size, not service quality. As reported, Netflix had a record year in 2020, adding millions of North American subs in a saturated market. E-Marketer expects Netflix’s domestic subscription revenue to increase to $11.76 billion in 2021, up from $10.64 billion in 2020.
Unlike Netflix, YouTube and Disney each operate online television platforms YouTube TV and Hulu+Live TV, respectively, which skew revenue statistics, according to analyst Ross Benes.
“Even though [online TV] subscribers remain low compared with the most popular streaming products, the high fees of [virtual MVPDs] have a big impact on these companies’ subscription revenues,” Benes wrote.