Streaming Wars a 'Fallacy': Top 5 Service Providers Dominate, Says LightShed

Suggestions of intense industry streaming wars are a possible “fallacy,” LightShed Partners blogged (login required) Wednesday, noting Netflix, YouTube and Amazon Prime Video combined for 64% of streaming hours in July. Citing Comscore data, LightShed said some 84% of viewing is spread among the top five apps, with Hulu (14%) and Disney+ (5%) added to the mix. Wednesday's launch of Google TV (see 2009300062) and the addition of a dedicated button on the Chromecast remote marked YouTube’s transformation from a casting device “to a full streaming device” akin to Roku and Fire TV, analysts said: It’s “hard to imagine how any advertiser who wants to be on connected TV is not thinking about YouTube first and foremost,” given its size. Disney+ has had “explosive” subscription growth in its first year, to more than 30 million in the U.S. and over 60 million globally, but has just 5% of streaming time spent, showing “how hard it is for a new entrant to build daily engagement.” HBO Max, Peacock and Paramount+ “waited far too long to compete,” they said, noting Netflix’s 13-year head start. Netflix’s 193 million global subscribers was a 27% year-on-year increase, averaging $10.80 per month; analysts expect it to raise pricing next year. HBO Max finished last quarter with only 15% of subscribers activating the service vs. continuing to use legacy HBO, LightShed said. The average revenue per Disney+ user is $4.62, while Hulu ARPU was down 10% year over year, they said.