Hors Netflix, paid streaming continues to garner subscribers, but all are also eyeing advertising

After Netflix announced a loss in the first quarter of 200 000 subscribers and forecasts still down for the current one, which sent a chill to the market, this one was waiting for the results of the others. All will have posted an increase, even if more or less important, and often at the cost of ever greater investments. But the market is tightening, in the meantime, linear chain activity, affected for the moment only at the margin often thanks to an increase in advertising prices, becomes difficult to keep level, and the American majors are not in the same boat depending on whether they are diversified or not. So after chasing the subscription, all are now starting to ogle advertising, either to introduce it on their paid platform, or by stepping up investments in AVoD, with increased content ambitions, without being at the same level as for SVoD.

In shape, Disney exceeds 205M DTC subscribers

Disney was the last of the major groups to present its quarterly results, ce 11 May, and had good news to share, having exceeded the 205 Skip to content direct to consumer. Disney+ won 7.9M to 137.7M, more than analysts forecast, Hulu, 300.000 at 45.6M and ESPN+, 1M to 22.3M. In six months, Those are 20 million more subscribers, enough to reassure the market, although the rise is partly attributed to Disney+ Hotstar in India where prices are significantly lower, the average revenue per user therefore remaining low at 4,35$. Disney+ Hotstar alone represents 50 Skip to content, for 44M in the USA and 43M elsewhere internationally.

The group also warned that growth could slow, especially in Eastern Europe with the war in Ukraine, still remaining confident, a strong line-up of content to come. During the last trimester, the platform notably had large audiences according to Nielsen's top streaming with the Disney animated film Charm, launched online last Christmas a month after the room where it was also a success, as well as with the latest Pixar Turning Red launched in March directly on the platform without going through the room, and in a lesser extent, the universe series Star Wars, The Book of Boba Fett. Hulu for its part welcomed the good audiences and the strong buzz generated by the latest series inspired by true stories, Dopesick, Pam & Tommy et The Dropout (on Disney+ internationally). The lplatform has announced to adapt The League of Extraordinary Gentlemen serial.

Disparition d’1 milliard de dollars en vente de films et contenus TV

Thanks to the increase in streaming revenue and the doubling of revenue from re-opened amusement parks, the quarterly turnover of the Disney group is doing well, progressing from 23% at $13.6 billion. Disney, on the other hand, reports $ 1 billion less for the licensing of films and programs, now reserved for Disney+ rather than being sold to others. According to the international press, termination of the output deal with Netflix (including Marvel) is largely the cause. At Disney, revenues from linear channels manage to grow a little in the United States thanks to an increase in prices (advertising and contracts with local ABC-affiliated channels) and the broadcast of the Oscars (which had taken place on another date in 2021), compensating for a drop in 3% internationally, with the closure of some channels.

The group's net income is nevertheless almost halved, investments in streaming have increased. The DTC activity thus generated a loss of $887 million over the quarter for a turnover of $4.9 billion.. In the conference call that followed, Disney has indicated that it maintains strong ambitions in terms of investment in content, who must reach the record sum of 32 billion this year all inclusive, a sum nevertheless down by a small billion compared to previous declarations, notice it Hollywood Reporter.

Despite the sharp rise in DTC, slight drop in turnover at Paramount

For its part, the Paramount group has indicated that it has garnered 6,3 million more subscribers to its DTC activities, at 62 million including +3.8M to 40M for Paramount+. The platform has seen strong engagement thanks to the series Halo, 1883, et Star Trek Picard, as well as sports with the NFL live, and internationally (where Paramount+ is currently mainly in Latin America) on MTV's reality show Acapulco Shore, reports the group. Its international development continues, Paramount+ will launch in England and Ireland on 22 next june. Still no date for France but it will be this year.

Thanks also to its AVoD/FAST platform, Pluto TV (68M monthly active users), where advertising is up 52% over a year, DTC activities posted an increase of 82% to $1.1 billion quarterly. Despite that, the group's turnover is down slightly from 1%, a decline mainly due to linear channels with the unfavorable effect of the Super Bowl, aired on the CBS group network last year, and aired on NBC this year, while cinema sales had a calmer quarter, and is also down.

Fusion HBO Max et Discovery+, show no mercy

In his last communication, succinct, on the subject avant fusion WarnerMedia et Discovery, AT&T for his part announced a number of subscriptions to HBO and HBO Max up by 3 million to 78.8M. The group did not specify whether certain titles made the difference. The blockbuster The Batman, got out 45 days after the room, broke all previous records for HBOMax movies on Smart TV, according to Samba, but it was mid April so on the second trimester. On his side, the discovery group, already renamed Warner Bros. Discovery, posted 2M more subscriptions to Discovery+ in the first quarter, totaling 24 millions. HBO Max and Discovery+ are to be combined as part of the merger, but we do not yet know in what form. Warner Bros Discovery's first decision was to shut down CNN+ which had just launched, arguing that the news channel was an essential component of the next offering.

The atmosphere in the group is not happy. With the merger, a major reorganization is underway, with dismissals and appointments on all sides, et 3 billions of dollars of synergies and savings to be found. In their first communication, WBD executives further implied that the bride was less beautiful than they thought, HBO having a higher churn rate, and expecting less profit from WarnerMedia assets than expected, while the combination of assets of the two groups is disordered. Regarding the sale of programs, WBD has also indicated that it intends to re-energize the activity, in countries where HBO Max is not yet or by playing on windowing. “We're not trying to win the streaming spending war! ” warned super boss David Zatlav, preferring investments “At scale” et “measures”. The whole organization is being turned upside down, including streaming side, activity now run by a man from Discovery.

Skip to content international	T1 subscribers 2022 in millions	+/- millions vs T4 2021
Skip to content	220	-0,2
Amazon Prime Video*	200*	N/C
Skip to content	137,7	+7,9
HBO+HBO Max**	78,8	+3
Skip to content	40	+3,8
Discovery+	24	+2

The Peacock hybrid platform displays 28 million accounts including 13 million paying

On the side of streamers more focused on the American market, chez Comcast/NBCUniversal, the performance of the freemium Peacock platform is on the rise, and his expenses too, but despite Peacock's loss of $456 million in the quarter, the group's operating profit is up, as well as its turnover (+47%), grace, there too, the reopening of amusement parks (+152%!), the return of theatrical films and the broadcast of the Olympic Games and the Super Bowl on NBC, which compensates for a small drop in subscriptions to linear channels.

During the 1st trimester, Peacock accounts 3,5 million more accounts, reaching a total of 28 million including +4M to 13 million paid accounts.  Among his successes, Bel-Air, new version of the series teen years 90 from NBC (with then the very young Will Smith), which was the most streamed series, par 8 million accounts, and the movie Marry Me with Jennifer Lopez, released simultaneously in theaters and on Peacock. The platform announced the production of three original films with Universal Studios, and signed a multi-year output deal with Lionsgate for the studio's second pay-tv window of theatrical films from 2024, movies being the most streamed content on Peacock, I explained NBC Universal.

Lionsgate seeks partner for Starz, channel+ manifest

First Window of Lionsgate Films Remains Booked, at least as long as it's the same group, to its premium pay-tv channel and streamer, Starz. The mini-major will announce its results, and therefore the number of subscribers of Starz and Starzplay international, nicer. She had it at the end of December 19,7 million and is in losses. The group has announced its intention to sell all or part of Starz. The investment fund Apollo Global Management associated with Roku would have filed an offer, according to Wall Street Journal, as well as Canal+, according to Financial Times, what would make sense for the French group, Starz having a fairly similar premium pay-tv DNA. In terms of original series, Starz is notably behind Outlander et Power.

AMC : more content and marketing investments, even if it means lowering your margin, but not too much

On the side of the smallest operators, AMC Networks, who owns channels like AMC (recognized for its series asThe Walking Deads), IFC (independent films) or Sundance TV and co-publishes BBC America, has increased by 500.000 its number of subscribers to 9,5 million for its various streaming offers, dont AMC+, Sundance Now, and targeted services like Shudder for horror movies. The forecast is always to reach 20-25 million from here 2025. Investments in content and marketing have been reinforced, and the operating margin will fall by 10% this year said the company. This is the biggest year in AMC's history for original content., she says, with already notable successes such as the finale of Better Call Saul which boosted AMC+ subscriptions. the company notably launched in production the spin-off of its flagship series, Isle of the Dead , as well as the adaptation of Mayfair Witches d’Anne Rice, after Interview with a Vampire, AMC having acquired the rights to the work of the author in 2020.

AVoD advances more or less FAST

As subscription streamers pay more attention to spending, we note a certain increase in investments by free platforms seeking to move upmarket. Several of them have signed output deals to recover windows, even if more or less short, cinema films, they further develop original production in the United States, even if the content they initiate remains more modest in terms of budget than that of paid offers, and most will have given a presentation this year at the Upfronts, annual event where channels unveil their upcoming programs to advertisers.

Year, the OTT content reader and aggregator (the small boxes) has announced that it has signed an output deal with Lionsgate for its FAST linear channels (Free Ad-Supported Tv) The Roku Channel running until the one with Peacock takes over 2024, and sets up a sophisticated windowing of a very short first run of the films immediately after their first exclusive window on Starz, then more distant and also longer rights. An agreement has also been signed for content from the A+E network channels, and The Roku Channel presented new original productions, rather flow programs, at the last Upfronts. Roku saw its growth slow in the last quarter, garnering 1 million additional users to 61.3M, a moderate increase compared to previous months due to the end of financial aid granted by the government in 2021, Roku said in its quarterly financial statement. The number of hours streamed has increased in three months of 1,4 billion to 20,9 Mds.  In its quarterly statement, Roku points out that TV reception via streaming exceeds that of cable in the United States according to Nielsen for the first time in March among 18-49 ans, 65% of them who used streaming that month, versus 63%, a box. Roku saw the number of people watching the Men's Basketball Semi-Final increase by 32% compared to last year while it decreased by 10% on the cable. The company has an increase in turnover of 29%, most, being in an investment period, always shows losses.

Roku isn't the only one fussing. Chez Fox Entertainment, Pipes, who announced 51 million active users and 3,6 billion hours watched last year, that is +40%, dual to 100 its number of original programs in 2022 and will set up audience measurement tools. New FAST channels will be added, a hundred local news and sports channels, chain Masked Singer, one on Gordon Ramsay, and a TMZ.

Amazon attacks the advertising market with Amazon Freevee (ex Imdbtv)

Finally, Amazon, which still does not communicate the number of subscribers to Prime Video, announced strong developments for Amazon Freevee, new name since 27 April from IMDbTV which operates 60 FAST chains. The original production will be increased by 70% in 2022, including some high-end original productions, original movies, starting with a romantic comedy Love Accidently, and some series including Bosch: Legacy, spin-off of one of Prime Video's oldest series. The platform will also launch comedy, and stream emissions, starting with one on decorating. Already at the beginning of the year, the platform had launched his first daily series of light fiction taking place in court, Judy Justice. There too, agreements have been signed for cinema films: the first free window of NBC Universal movies from 2020-21 as well as a package of animated films including Sing 2, and with the Disney Group a limited number of 20th Century Fox films, whose Deadpool, for very short windows.

Amazon still does not give the figures of its paid offer, Prime Video. During his results, end of April, the group congratulated themselves on being the first streamer to broadcast a major awards ceremony live with the ACMs (Academy of Country Music) Awards, presented by Dolly Parton, who after 13 years on the CBS network, becomes paying. (It's not the only big network date that's getting encrypted, the Disney group passing Dance with the stars from ABC to Disney+). Amazon also highlighted the ratings success of Reacher, stayed three weeks in the top 10 Nielsen streaming in the USA, leading in the first, as well as The Marvelous Mrs. Maisel, whose fourth season remained six weeks in the top 10 originals. A l’international, Those are 30 international originals that were launched this quarter, including local adaptations of the comedy game LOL in France, to Canada, in Germany and Italy. Amazon has also indicated that it has integrated MGM and its employees into Amazon Studios..

Advertising on Netflix and Disney+ before the end of the year

“We have the best model” launched the person in charge of Peacock, and it is clear that paid streamers seem to find advertising tempting. Netflix has indicated that its ad-supported version could launch as early as this year., while Disney+, also confirmed his, and this after HBO Max did the same last July. The version of Disney+ with advertising will be launched at the end of this year in the United States, then internationally in 2023. The streamer intends to limit advertising to a maximum of four minutes per hour, preschool programs will remain exempt.

Disney does not come from nowhere, already having a similar model with Hulu, which offers a cheaper formula with advertising, and at a conference this week, Disney has also indicated that, based on this example, he was counting on a majority of subscribers for the version with advertising.

This is not the case for Netflix, which will have to explore a profession it does not know. Waiting, after seeing dragged behind him and his pompous expenses, all the American majors, the streamer will have to control its costs more and announced 150 layoffs, dont, according to the American press, most in the United States, including senior creative leaders. The great adventure of streamers therefore takes a new turn, a little more down to earth.