Netflix (NASDAQ:NFLX) was the dominant player in the video streaming space coming into the new decade. However, the top dog in the streaming space also faced the threat of rising competition as tech and entertainment giants sought to unveil their own platform in a rapidly changing environment.
In March 2020, the severity of the COVID-19 pandemic became apparent. Interestingly, this also coincided with the launch of several top streaming platforms. With millions of Americans forced to stay home due to lockdown measures, streaming platforms soaked up views and delivered huge subscriber numbers.
This continued through 2021, but streaming platforms saw subscriber growth level off in 2022 as life began to return to normal in the developed world. In May of this year, CNBC declared that the “streaming wars” were over. Instead of focusing on subscriber growth, top streaming platforms were more concerned with cutting costs, raising prices, and cracking down on password sharing. Top industry voices are already scrambling for a new growth narrative, and some have their eyes on the gaming space as an answer.
Netflix attracted criticism when it announced that it would crack down on password sharing and simultaneously raise prices. The strategy has seemingly paid off as the streaming giant gained six million subscribers in the second quarter (Q2) of fiscal 2023. Disney, which launched its Disney Plus streaming platform in November 2019, announced that it had lost 11.7 million subscribers worldwide in the three months ending July 1.
Disney Plus had a red-hot start after its launch. However, the recent loss of subscribers has spurred Disney to turn to job cuts. Moreover, it is reportedly set to axe some content in order to further reduce operating costs.
