Streaming Subscriptions Skyrocket
On Thursday, the Motion Picture Association (MPA) released data showing subscriptions to online video streaming services worldwide hit 1.1 billion in 2020. The 1 billion subscriptions mark a new milestone amid the pandemic that forced movie closures and kept consumers at home. People were forced to find other means of entertainment while locked inside, and online video streaming services were a huge hit.
The unprecedented change in consumer behavior sparked by the pandemic fueled record-breaking growth for streaming services like Netflix and Walt Disney. Streaming subscriptions grew by 26% year-over-year as more people switched to digital entertainment available to them at home. Last year, the number of streaming subscribers in the United States alone increased by 32%.
Even though movie theaters have reopened in many parts of the world, the video streaming subscription model remains the ruling growth strategy at big Hollywood studios and tech giants that compete with them. Netflix, the world’s most popular streaming service, recently passed 200 million subscribers worldwide. Disney+, Walt Disney’s streaming service, has more than 100 million subscribers, and the service isn’t even two years old.
As online video streaming continues to grow, Hollywood is creating more content, particularly episodic series, which keep consumers entertained longer than films. According to the MPA, in 2020, there were 537 series produced by American production firms and distributed to online channels, up from 381 the year before.
Binge-watching TV shows and movies were a massive part of my life during the pandemic — I don’t know what I would’ve done without episodes of “The Mandalorian” and “The Crown.” What streaming services do you use, and what are your favorite shows?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.