The Great Reaggregation Lockdown, Demand and Consolidation
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The 20,000 Foot View: removed the constraints imposed by peak attention, leading to a surge in home-based entertainment consumption and streaming adoption. Fortuitous timing, enforced home working and the end of the commute, tied in with the need to entertain home-bound children, has greatly accelerated direct-to-consumer adoption. Later adopters have now become familiar with streaming; the next step is to optimise the user experience for consumers exiting traditional pay-TV. The groundswell for this has just begun, and the new players are well placed to enable this reaggregation process as they move beyond initial post-launch growth.
Key insights
- Streaming video are now mature, unlike the
- Netflix’s ability maintain significant growth in 2020, a increase in subscribers million), testament to the increased and demand for long-form video streaming
- Growing demand also evident for multiple subscriptions, increased from penetration in 2018 in 2020
- The new led by Disney and Apple driving fragmentation
- We are entering phase three of the reaggregation as the normalisation of streaming drives a consumer need reconsolidation
- Older video are acquiring streaming-centric behaviours at fast-growing rate, with year olds making up of all US viewers
- As streaming matures, reaggregation needs to begin earnest in order to avoid churn from digital laggards as move along the streaming adoption
Companies and brands mentioned in this report: Amazon, Amazon Prime Video, Apple TV+, Comcast, Disney, Disney+, HBO Max, Netflix, Paramount, Paramount+, Peacock, Warner Bros., Warner Media