Netflix suffered a severe defeat last quarter, suffering significant losses in market share. Though its biggest competitor has had similar issues, that probably won’t be much of a consolation for Netflix.
Netflix and Prime Video slip – Disney+ profits
Netflix has long since ceased to be the streaming market leader. Amazon has been sitting on the throne with Prime Video for some time – which is mainly due to the fact that the video service is included in the popular Prime subscription.
In the last quarter, however, both Prime Video and Netflix saw their market share in the streaming sector decline, according to new data from market research firm Kantar. With a market share of 37.7 percent, Prime Video remains the leader by a wide margin, but at the end of 2022 the value was still an impressive 49 percent.
At Netflix, the decline is somewhat more moderate. The US streaming service falls from 19.6 percent to 12.8 percent. Particularly bitter for Netflix: Market competitor Disney+ managed to increase its market share from 13.1 percent to 14.6 percent in the same period and is now ahead of Netflix in second place in the streaming charts.
The streaming service’s new plan could provide an explanation for Netflix’s decline in market share. The group wants to take tougher action against password sharing and prevent it completely. Although this change has not yet been rolled out, it is quite possible that some customers have already decided in advance to cancel their subscription because of it.