In Q2 2023, PARQOR will be focusing on three trends. This essay focuses on all three.

To remind you, PARQOR identifies a few key trends each fiscal quarter that reveal the most important tensions and seismic shifts in the media marketplace. Must-read stories or market developments are not always obvious from press reports or research analysis, and often require a deeper dive. PARQOR’s analysis questions established ideas and common wisdom, reassesses the moving pieces, and reveals the potential in the media marketplace in 2023.

A bit that comic Louis CK did on Late Night with Conan O’Brien in the 00s succinctly summarizes the past week of headlines: “Everything is amazing right now, and nobody's happy.” The premise was that technology enables incredible new things, like WiFi access in planes, and it has become easier for consumers to complain when they don't have to these unprecedented amenities.

In streaming, consumers have more choices than ever and yet no one on the supply side or demand side of the streaming marketplace seems happy. On the supply side, Hollywood writers have voted to strike because they are unhappy with how the streaming business model has negatively impacted their compensation. Also, legacy media executives must navigate another earnings season where investors no longer buy into their long-term visions for streaming.

On the demand side, research released by Deloitte Insights found that “Millennials surveyed continue to show signs of subscription fatigue and cost-consciousness.” Research from LG Ads reported that nearly half (45%) of consumers felt there were too many content choices. In selecting content, consumers reported spending an average of 5.7 minutes between the time they turned on the TV and when they started watching content. 

Antenna research recently revealed that streaming subscriber churn is growing, up 49% from 2021 while additions of subscribers grew 18%. The Wall Street Journal wrote about how this trend is resulting in Americans becoming “nostalgic for the cable TV experience”, and increasingly streaming content on free ad-supported TV services (FASTs) like Tubi and Pluto TV. 

Research from Morning Consult added to this picture of consumer unhappiness, finding of the video streaming service aspects subscribers are least satisfied with, four of them have to do with live programming. Netflix’s recent failed attempt to livestream the “Love is Blind” Season 4 Reunion Special left millions of viewers unable to watch it live (6.5 million ultimately were reported to have watched it).

"Everything is amazing right now, and nobody's happy." Does it all matter? Yes and no.

Key Takeaway

New data tells a story that no one seems to be happy within the streaming marketplace or where it is headed (except for everyone delivering and consuming the free stuff).

Total words: 800

Total time reading: 3 minutes