The pandemic saw video streaming services reach their record peak, particularly during the peak years of restrictions due to COVID-19, and then 2020 and 2021. Now, the boom seems to be over.
The gradual return to normal is definitely streaming services’ biggest brake, even if it’s not the only one. Large-scale blockades caused an increased demand for home entertainment during the first two years of the pandemic. The crashes have been a godsend for Apple, too, considering the launch of Apple TV+ a few months before COVID-19.
The epidemic may not be over, but high vaccination rates and natural immunity to the virus are leading to a gradual return to normal. This had, as an obvious consequence, a decrease in demand for the entertainment stream. For some services, this meant losing subscribers. For example, Netflix recently reported a loss of 200,000 subscribers and warned that it could lose up to 2 million subscribers this quarter.
A similar story is the one told by Apple Music, which lost a total of one million subscribers in the last quarter of the UK.
In 2022, SVOD Services [Streaming Video On Demand] In the United States, they will generate $25.32 billion in revenue, up 13% from last year, according to PwC’s Global Entertainment & Media Outlook 2022-2026 report, released Monday. This sector is expected to reach $33.59 billion by 2026, representing an 8.5% compound annual growth rate (CAGR) from 2021 to 26.
This year’s projected 13% increase is down from the 19.5% annual growth recorded in 2021 and respect to a massive 27% increase in 2020. The same study forecasts declines, predicting that in the US, video-on-demand streaming platforms will experience a year of negative growth, dropping by 8% this year to $13 billion.
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