Growth Returns to US Video Streaming Market in Q2

August 25, 2022

This article is included in these additional categories:

Digital | Video

Netflix’s Q2 subscriber loss notwithstanding, it was a solid quarter for the US video streaming market, according to the latest quarterly results from Kantar’s Entertainment on Demand (EoD) service. The data indicates that 88% of US households accessed video streaming services during the quarter, up by 2% points from Q1, after stalling in the first quarter of the year.

Growth was witnessed across various types of streaming services:

  • Penetration of paid streaming without ads (SVoD) grew by 1.5% points to 82.9%;
  • Ad-supported streaming (AVoD) increased by 1.6% points to 26.9% household penetration; and
  • Free, ad-supported streaming (FAST) was up by 2.1% points to 22.3% penetration.

Along with the growth in streaming video service penetration, stacking behavior also increased. This past quarter the average streaming household accessed 5 different services, leaving behind the Q1 suggestion that the market may have reached peak stacking behavior. This stacking behavior is correlated with the rise of ad-supported services. As Kantar notes: “Streaming has gone full circle, once being the destination to avoid Cable TV ads, to increasingly relying on ads to drive growth.”

Meanwhile, Amazon Prime Video gained the largest share of new SVoD subscribers for the 5th consecutive quarter, at 20.5%. Disney+ gained 14.8% of new subscribers during the quarter, while Apple TV+ had a strong quarter, capturing 10.6% share of new subscribers, compared to 4.6% share during the year-earlier period.

Netflix, while remaining a dominant force in viewing time, suffered from a decline during the quarter, in line with its earnings release. According to Kantar, 61% of US streaming households accessed Netflix, down by 6% points year-over-year. Netflix captured 6.5% share of new subscribers in Q2, behind Prime Video, Disney+, Apple TV+ and HBO Max.

For more, check out Kantar’s data here.

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