Risks Awaiting Streaming Platforms Like Apple TV And Netflix!

  Risks Awaiting Streaming Platforms Like Apple TV And Netflix! Consumers Now Expect Much More From Video Streaming Platforms!   Recent surveys show that video streaming platforms like Walt Disney (NYSE:DIS) and Netflix (NASDAQ:NFLX) may be out of honeymoon. It is argued that with the lifting of the restrictions that started with the pandemic, most consumers will now return to their old habits and move away from video streaming platforms. A recent report by American Customer Satisfaction Index LLC shows signs of a decline in customer satisfaction. It's no coincidence that these declines started at a point when consumers were considering optimizing their entertainment budget!

Effects of the Pandemic Process

The survey in question covers the entire pandemic process from April of last year to March of this year. The American Customer Satisfaction Index Survey found that US consumers' overall satisfaction with streaming services dropped 2,6 % during this period.

The same decrease in satisfaction was seen on Apple TV as well as on many platforms!

Netflix and Apple's TV dropped 4 % from their 2020 ratings, while Disney+, Hulu, Amazon (NASDAQ:AMZN) Prime, CBS All Access (now Paramount+) and Apple TV+ dropped nearly 3 %. The streaming industry, which has not been able to develop more than 1 %, may be having its good days after all! The American Customer Satisfaction Index research shows that the two most important reasons for decreased satisfaction are: - Varieties of films on offer or -Lack of variety Less theoretical but still worth considering is the fact that a lot of time is spent exploring new alternatives.

Consumers Now Expect Much More From Video Streaming Platforms!

Whatever the reason, consumers are clearly less influenced by the media streaming industry than they were a year ago.

If we connect the dots!

All the major video streaming platforms still have large customer bases, of course they all still have the ability to grow. With the exception of easy-to-earn subscribers, it can be harder to gather potential users. In this context, it was a disappointment that Netflix added just 4 million customers in the first quarter, while still the largest in the industry at 208 million subscribers. Even more alarming is the fact that only 1 million new members subscribed for the three-month period ending this month! At the same time, streaming platforms need to develop anti-attrition strategies much more than in the past. It cannot be said that the problem is small for Netflix, which shows the lowest loss rates in the entire streaming world. Netflix, which has never faced such retention and clear growth barriers, is already starting to worry its shareholders.  

Source: The Motley Fool

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