Report: Streaming In U-S Reaches 80% Penetration

The penetration of streaming in U.S. households has expanded to 80% in the first quarter from 79% in the fourth quarter of last year, according to NextTv citing a new report from analyst Michael Nathanson of MoffettNathanson.

A year ago in the first quarter of 2021, streaming penetration was 74%, according to data Nathanson uses from a monthly survey by HarrisX.

Nathanson says the growth in penetration came because of increases in subscriptions to newer, smaller services like Peacock and Paramount Plus, while the OG streamers like Netflix, Hulu, Disney Plus and Amazon were relatively flat as a group.

In the quarter those established services appeared to step-down the increase in new episodes of original programming. By contrast newer services are ramping up with New series on Paramount Plus and the Olympics and Super Bowl on Peacock. 

Peacock’s penetration was up 235 basis points quarter over quarter. Paramount Plus’ penetration increased 350 basis points quarter over quarter HBO Max was up 185 basis points.

Discovery Plus’ growth wasn’t exceptional, but its subscribers’ daily usage was a month the highest in the industry, trailing only Netflix and Hulu. 

The increase in streaming penetration came from consumers who don’t have a pay TV subscription. Penetration in homes that do have a pay-TV subscription was flat.

Nathanson sees the shift to streaming continuing to be a problem for legacy media.