5 Surprising Streaming Trends To Watch For In 2023

Few people would have predicted going into 2022 that it would finally be the year Netflix’s gangbusters growth stalled out. During consecutive quarters this year, the longtime leading streaming site saw year-to-year declines in subscribers, marking the first time that had happened in 10 years.

By the time the streamer reported third-quarter results, its growth was back on track, but the damage was clearly done. NetflixNFLX
fast-tracked its new ad-supported tier and began testing a system for banning password sharing. Those moves will be closely scrutinized in 2023, with observers keen to see whether consumers will accept major changes to the very DNA of the popular streamer.

Netflix’s subscriber loss was certainly one of the biggest surprise headlines of 2022. What will be this year’s? Here are five streaming trends to watch for in 2023.

1. Ad-Supported Tiers Catch On And Expand

Both Disney+ and Netflix recently introduced ad-supported platforms, and AmazonAMZN
is accepting ads for Thursday Night Football. How consumers receive the lower-priced, ad-supported tiers may determine whether other platforms adopt similar approaches.

While some initial reports suggested Netflix didn’t meet early advertising promises, this week, CFRA raised its stock price target for the streamer based on a strong outlook for the ad-supported platform. “We think it will be difficult for competitors to catch NFLX, one of the few profitable streaming providers with global scale,” wrote CFRA analyst Kenneth Leon.

2. A Pullback In Niche Launches

The specter of the disastrous CNN+ launch will loom large in 2023. Where it once seemed the market was saturated with 800-pound gorillas like Disney+ and HBO Max, the fast folding of CNN+ and the takeaways from that will serve to keep future niche launches more limited. With people reaching a saturation point with their new subscriptions, it’s a big risk to launch something with limited appeal.

3. Disney+ Outpaces Netflix In Subscribers

Disney+ has crowed about moving ahead of Netflix in subscribers—which, granted, includes Hulu and ESPN bundles as well. But Disney+ has seen outstanding growth, including adding 12.1 million subscribers in third quarter to boost the three-way total to more than 235 million, or 12 million more than Netflix. Analysts have said they anticipate the recent launch of Disney+’s ad-supported service will push Disney+ even farther ahead in the streaming wars.

4. Finally, Linear Advertisers Will Hop To Streaming

While streaming subscriptions have grown, and streaming viewership even outpaced broadcast at times this year for the first time, ad dollars haven’t followed because in part there was no vehicle for them; Netflix and Disney+, two of the biggies, didn’t have ad platforms. But the addition of those ad-supported tiers, with others expected to follow, will mean some brands that have remained stubbornly devoted to linear TV will experiment with streaming.

5. Free Ad-Supported TV Services Take Off

Following on the heels of hardware manufacturers Samsung and Roku launching free ad-supported TV (FAST) services, we’ll see even more smart TV makers doing the same. There’s been more aggressive competition for content there, too, with Roku launching original offerings and Samsung providing an expansive VOD library.