discovery+ Is One of Streaming’s Fastest-Growing Services, Despite Max Merger; Prime Video, Apple TV+ Also Gainers
It’s starting to appear as if Warner Bros. Discovery knew what it was doing when the company kept discovery+ as a standalone service. The company originally intended to merge it completely with HBO Max this year, but pivoted in February to a plan that saw much of discovery+’s content migrate to its new streamer Max, but also left discovery+ as a separate entity that customers could subscribe to on its own.
New data released by research firm Kantar is showing that was a good decision. Kantar’s numbers show that discovery+ was among the fastest-growing subscription video-on-demand (SVOD) services on the market in terms of subscriber share during the second quarter of 2023, despite the fact that the launch of Max took place on May 23.
One of the reasons for this could be that Max reportedly has far fewer TV shows than discovery+. As of the May 23 launch date of Max, discovery+ had over 700 more TV shows than Max did, totaling nearly 8,000 episodes. WBD did not intend to move every piece of content from discovery+ to Max, but that disparity is striking.
There have been other signs that the discovery+ audience has not made the migration to Max as enthusiastically as WBD may have hoped. Two weeks after Max’s rollout, only 20% of viewing on the service was being spent with discovery+ content. While WBD execs were pleased with that total at the time, it seems like there are still quite a few people drawn to the cheaper, more streamlined lifestyle platform than the larger, all-encompassing Max. Shark Week content may help cross-pollination increase during the last week of July, but it’s clear that the numbers aren’t what WBD would have liked to see in an ideal world.
Kantar’s research also showed that Apple TV+ was a big gainer in the second quarter. The tech company’s small, but mighty streamer boasted the most-watched SVOD title in the month of June with “Ted Lasso,” reinforcing a Whip Media survey which showed the service had 31 titles on its weekly top-10 streaming show lists. The streamer’s library has grown by 35% in the past year, helping it reach new heights in terms of viewers.
Prime Video was also a big riser during Q2, despite the underwhelming performance of its international spy series “Citadel.” Initially the show drove big ratings for the streamer, but the audience waned as the season went along. Amazon had long planned to create an international TV franchise based on “Citadel,” with the Italy-based “Citadel: Diana” launching in 2024 starring Matilda De Angelis. Whether or not the tepid response slows the expansion or not is yet to be determined.
Kantar’s numbers also illustrate why Netflix didn’t see a rash of cancelations after enacting new password-sharing restrictions in major territories like the United States last quarter. Its reputation for consistent content seemingly ensured users would stick by the service despite recent changes; 34% of all streaming customers said they picked Netflix first when they were looking for something new to watch. Prime Video was second, with 13% of users saying it was their top destination for a new title.
More generally speaking, 4% of U.S. households tried a new streaming service during the second quarter. That is a dip from the six percent who reported doing so in Q1, but in line with seasonal trends. Streaming led cable, broadcast, and all other methods as the most-watched source of video in June of 2023.
Amazon Prime Video
Amazon Prime Video is a subscription video streaming service that includes on-demand access to 10,000+ movies, TV shows, and Prime Originals like “The Lord of the Rings: The Rings of Power,” “Jack Ryan,” “The Marvelous Mrs. Maisel,” “The Boys,” and more. Subscribers can also add third-party services like Max, Showtime, STARZ, and dozens more with Amazon Prime Video Channels. Prime Video also offers exclusive live access to NFL Thursday Night Football.