Omdia predicts that 2024 will see a shift as some users of paid streaming services revert to free, ad-supported online video platforms.
Crackdowns on password sharing may temporarily boost streaming subscriptions, but also risk alienating some customers. Ongoing high inflation could make cheaper or free options more appealing for cash-strapped households. While adding advertising to paid platforms could help offset revenue declines, streaming services are expected to implement ads judiciously to avoid disrupting the viewer experience. Strikes and content budget cuts may also diminish quality on some services over time.
Omdia still forecasts subscriber growth for paid streaming overall given the continued appeal. However, precarious market dynamics next year could threaten growth if services mishandle factors like ad implementation or price hikes.