current
Digital Fatigue Impacts Streaming
While monetization remains strong, streaming apps face declining engagement due to digital fatigue, competition, and macroeconomic factors.
Timeframe
near-term
Categories
Subcategories
Impact areas
Detailed Analysis
Despite continued growth in revenue, streaming apps are experiencing a decline in user engagement, attributed to "digital fatigue," increased competition from other entertainment apps like TikTok, and macroeconomic pressures on consumer spending. This trend is evident in the flattening or declining time spent on streaming apps in several mature markets, including the US and China. While emerging markets offer some growth potential, the overall streaming landscape is becoming increasingly saturated, with platforms relying heavily on live events and tentpole content to retain users.
Context Signals
The rise of ad-supported subscription tiers as a monetization strategy.
Increased competition in the streaming space, with multiple platforms vying for user attention.
The growing popularity of short-form video apps like TikTok.
Edge
Streaming platforms will need to focus on providing unique and exclusive content to differentiate themselves and combat digital fatigue.
Bundling streaming services with other offerings, such as telecommunications or gaming, could become a more prevalent strategy.
The integration of interactive and personalized features could enhance user engagement and retention.
