Streaming Platforms in 2023: A Year of Profitability Pursuits and Subscriber Battles
As 2023 draws to a close, the streaming industry looks dramatically different from where it started the year. The era of growth-at-all-costs has given way to a new priority: profitability.
The Big Picture
The streaming landscape in 2023 can be summarized in one phrase: the great correction. After years of spending billions to acquire subscribers, platforms are now focused on making their streaming businesses financially sustainable.
Platform-by-Platform Review
Netflix: The Comeback
Netflix had perhaps its strongest year in recent memory. After a difficult 2022 that saw subscriber losses, the company rebounded spectacularly through two key strategies:
- Password-sharing crackdown: Converting freeloading households into paying subscribers
- Ad-supported tier: Reaching 15 million monthly active users within its first year
The result: Netflix ended 2023 with strong subscriber growth and record Q4 revenue of $9 billion.
Disney+: Narrowing Losses
Disney+ reached 150 million subscriptions by year’s end, with revenue hitting $8.4 billion. More importantly, Disney narrowed its streaming losses by 74% year-over-year — from a $1.4 billion loss in Q4 2022 to $387 million in Q4 2023.
However, challenges remained. Disney+ downloads hit their lowest since launch, and the platform lost market share as competition intensified.
Max (formerly HBO Max): Finding Its Identity
Warner Bros. Discovery rebranded HBO Max as “Max” and launched an ad-supported tier, seeking to broaden the platform’s appeal beyond HBO’s traditional premium audience.
Paramount+: Steady Growth
Paramount+ continued growing its subscriber base while exploring strategic options, including potential mergers and partnerships to strengthen its competitive position.
Key Themes of 2023
1. The Ad-Supported Revolution
Every major platform now offers an ad-supported tier, fundamentally changing the industry’s business model.
2. Content Rationalization
Studios are spending more carefully on content, canceling underperforming shows and focusing on titles that drive subscriber growth.
3. The Bundle Returns
After years of unbundling from cable, streaming services are beginning to re-bundle, offering multi-service packages to reduce churn.
4. Live Content Expansion
Streaming platforms are investing heavily in live content — sports, events, and news — to differentiate from competitors.
Looking Ahead to 2024
The streaming industry enters 2024 with clearer business models and a focus on sustainable growth. Key questions for the year ahead include the pace of industry consolidation, the evolution of ad-supported models, and whether streaming platforms can achieve consistent profitability.
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