With the growing popularity of over-the-top (OTT) streaming services in the US, competition in the space is heating up. Netflix continues to maintain the top position in the space, but it is gradually ceding market share to Disney.
According to the research data analyzed and published by ComprarAcciones.com, Netflix’s US OTT subscription revenue for 2020 totaled $10.44 billion in 2020. It rose by over $1 billion from $9.24 billion in 2019.
Based on its Q4 earnings report, Netflix had 203.7 million paid subscribers globally by the end of 2020. It added 36.6 million new subscribers during the year, marking the highest annual gain.
eMarketer projects that Netflix will see its share of the market drop from 36.2% in 2020 to 30.8% in 2021.
Disney+ OTT revenue grew by 1,412.5% in 2020 to $1.94bn
Walt Disney’s remarkable rise is attributed to Disney+’s robust performance.
Disney+ generated $1.94 billion from US OTT subscriptions in 2020. Compared to 2019’s $0.13 billion, that was a dizzying 1,412.5% year-over-year (YoY) growth. In 2021, Disney+ is estimated to grow by 47.9% to $2.87 billion and by 47.5% in 2022 to $4.23 billion.
In 2020, Disney+ accounted for a 26.5% share of Walt Disney’s US OTT subscription revenue. Hulu had a 67.6% share while ESPN+ held 6.8%.
The US OTT market is growing at a much higher rate than the overall video subscription market due to cord-cutting. In 2020, the overall market was worth $115.57 billion, and it is set to rise by 3.6% to $119.69 billion by 2021. The annual growth rate of the market will drop to 1.7% in 2022, 0.8% in 2023 and 0.25% by 2024.
Meanwhile, the overall OTT revenue rose by 41.2% in 2020 and is set to rise by 29.9% in 2021 and 19.4% in 2022.