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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 +1% 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.


Both Disney+ and Netflix recently introduced ad-supported platforms, and AmazonAMZN -3.7% 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.


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.

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.
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Based on the above text, what are some key trends in the streaming industry?
gpt
Ad-supported tiers are growing in popularity among streaming providers as they leverage their global audience and scale. Furthermore, launches of niche products will slow down given the poor reception of CNN+ and as people reach a personal limit of streaming subscriptions. On the flip side, Disney+ is experiencing rampant growth and is expected to pull ahead of the competition in terms of subscriber numbers with the launch of its own ad-supported tier. 