(Reuters) – Video streaming services saw a drop in downloads and active users during April, a research note by Bank of America showed on Monday, citing data from Sensor Tower, likely pressured by heated competition in the segment and an uncertain economic outlook.
Across all video streaming services, including Netflix, Paramount and Walt Disney, downloads and monthly active users (MAU) declined 4% in aggregate, according to the note.
WHY IT’S IMPORTANT
The streaming companies are seeing a slowdown in growth across their categories, with some analysts pointing to several markets reaching maturity, especially in the U.S. and cooling in demand post the pandemic-driven boom.
BY THE NUMBERS
Netflix saw a decline of 6% in downloads and 8% in MAU, while Disney’s downloads fell by 26% and MAU by 10%. However, Warner Bros Discovery saw both year-on-year and month-on-month growth with about 11.8 million downloads and 48.6 million MAUs, said the research firm.
WHAT’S NEXT
Media companies are doubling down on international expansion, investing in sports streaming ventures and raising prices on their platforms to gain subscribers.
The weakness comes from streaming service providers pushing for ad-supported versions and password-sharing crackdowns to stay ahead in the streaming wars ignited by Netflix.
(Reporting by Priyanka.G in Bengaluru; Editing by Ravi Prakash Kumar)
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