Consumers are spending more money monthly on video streaming plans. But, as consumers look to cut streaming plans as costs go up, only the best and most-loved platforms will thrive, which could be bad news for streaming stocks.
What Happened: Benzinga recently polled its website readers to ask which streaming platform would be the one they would keep if they were forced to choose.
The poll came ahead of highly anticipated first-quarter earnings from streaming leader Netflix Inc NFLX.
The question was: "If you could keep one of the following streaming platforms, which would you choose?"
The results were as follows:
Disney+: 8%
Netflix: 61%
Amazon Prime Video: 24%
MAX: 7%
The results of the poll showed the dominance of Netflix with the streaming platform picked by more than 60% of respondents as the one to keep.
Netflix spent aggressively on acquired and original content over the year and continues to have some of the most streamed shows and movies. Its shows also trend as topics worldwide.
Ranking second in the poll was Amazon Prime Video, which is owned by Amazon.com Inc AMZN. Amazon acquired MGM in a move that significantly boosted its library of content. The company has also been aggressive in acquiring sports rights, including being the exclusive home of "Thursday Night Football."
A study recently showed Prime Video had the largest library of shows and movies, ranking ahead of Netflix.
Disney+ from Walt Disney Co DIS and MAX from Warner Bros. Discovery WBD ranked third and fourth, respectively.
Content on Disney+ appeals to fans of some of the biggest franchises of all time including Star Wars and Marvel. The platform also has a vast library of kids' content, which could make it a must-have for families.
Max is the home of content from HBO and offers content from brands like Discovery Channel, CNN, Cartoon Network, Adult Swim and Animal Planet. The platform has sports content too, which might appeal to certain streaming users. Max comes in on the pricier side of the streaming platforms, which could have impacted the poll results.
Related Link: Netflix Q1 Earnings Preview: Subscriber Growth, Potential Price Increase, Ad-Tier Plan And More On What Wall Street Expects
Why It's Important: A recent Deloitte survey showed that U.S. consumers spend $61 per month on streaming platforms.
In the survey, 36% said that the content was not worth the money for most platforms.
An alarming statistic for the streaming sector was that 40% of households said they had canceled at least one streaming service in the past six months. Forty-eight percent of respondents said they would cancel a streaming platform if the price went up $5 or more monthly.
Netflix reports first-quarter financial results Thursday, April 18 and among the key items investors and analysts are watching is a potential price hike for its ad-free plans.
The study was conducted by Benzinga from April 16, 2024 to April 18, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 397 adults.
Photo: Proxima Studio via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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