Netflix app downloads plummet in June, analysts say

Adding to the signs of hard times netflixEvercore ISI analyst Vijay Jayant reports that the streamer’s app download activity was down in June.

Jayant also noted that Paramount Plus downloads hit record highs in the second quarter.

Global downloads of streaming subscription video-on-demand services grew 8% year-over-year in June, with Netflix holding a 28% share, followed by Disney Plus at 26% and Amazon Prime at 20%. For ad-supported VOD apps, global downloads were down 17% year-over-year in June, but up 2% from May.

Virtual MVPD downloads were up 69% in June from a year ago and 46% from May. YouTube TV had a 46% share of downloads, followed by DirecTV Stream with 35% of downloads and fuboTV with 12% of downloads.

Evercore ISI SVOD Chart June

(Image credit: Evercore ISI and Sensor Tower)

Based on data from Sensor Tower, Jayant said Netflix downloads were down 5% from a year ago in June and 2% lower than last month.

The year-over-year decline was largest in the Asia-Pacific and US-Canada regions, at 16% and 13% respectively. Downloads increased 8% in Europe-Middle East and 1% in Latin America.

Compared to May, downloads were up 14% in the US-Canada and 1% in Europe-Middle East, but were down in Asia-Pacific and Latin America.

Netflix shocked the streaming industry by reporting a loss of 200,000 subscribers in the first quarter. Its stock plunged, and the company announced plans to restrict password sharing and launch an ad-supported tier to kickstart growth.

Jayant notes that the negative app download trends “are broadly consistent with management’s comments on gross adds stabilizing at a lower level than historical and net adds being negatively impacted by higher unsubscribe.”

He added that monthly active users were down 5% from a year ago, but flat from May.

Meanwhile, Paramount Plus downloads were up 19% in June on a year-over-year basis and 11% month-over-month, contributing to record download activity in the second quarter.

Jayant noted that Paramount Plus has made sequential improvements to downloads every quarter since its launch in 2021.

Paramount Plus download growth was boosted by international activity in June. It was up 37% month-over-month in June, but down 9% nationally.

Disney Plus downloads (not including Hotstar) accelerated in June, benefiting from new market launches and the arrival of new content. Downloads were up 29% year-over-year globally and 36% month-over-month. Domestic downloads were up 14% from May, but down 10% from a year ago.

For the quarter, Disney Plus downloads were up 28% year over year and 5% for the quarter.

Including Hotstar, Disney Plus downloads fell 10% in June from a year ago and 39% from May after the IPL cricket league tournament ended in May. For the quarter, downloads were up 27% over last year and 37% over the first quarter.

For Warner Bros. Discovery, HBO Max downloads were down 9% from May, but still up 26% from a year ago. Domestic downloads were down 53% from the previous year.

Discovery Plus downloads were down 3% from a year ago, but up 10% from May. For the second quarter, download activity was the weakest since the launch of Discovery Plus in the first quarter of 2021.

“We wouldn’t be surprised if download activity continues to moderate as Warner Bros. Discovery cuts HBO Max marketing spend ahead of the launch of an integrated SVOD service, which we expect will occur in Q1 2023. .” Jayant said. ■

About Selena J. Killeen

Check Also

Cancer-causing chemical found in Michigan pond

(NEW YORK) – Michigan state investigators said test samples taken from Hubbell Pond in Milford …