Quarterly results show slowing subscriber growth
Executives pointed to advertising revenue and price increases to offset a softer signup quarter.
Quarterly results from a major streaming company showed subscriber growth slowing further, with executives directing analysts toward advertising revenue and recent price increases as the levers now driving the business.
Growth is no longer the headline metric
For most of the last decade the sector was valued on subscriber additions. With penetration high in mature markets, the emphasis has shifted to revenue per user, which is why ad tiers and price rises now dominate these calls.
The industry spent a decade buying subscribers. It is now spending its energy working out how much each one is actually worth.
- Advertising revenue grew faster than subscription revenue
- Content spend was described as flat year on year
- International markets carried most of the net additions
Content spending discipline was a recurring theme. After years of expansion, the majors have converged on a strategy of fewer, larger titles, a shift visible in the shorter commissioning slates across the sector.
