Three conglomerates control half of American audience demand for TV content
August 4, 2022
Due to the combined assets of Discovery Inc. and WarnerMedia, only three conglomerates—Walt Disney Company (19.7%), Warner Bros. Discovery (17.8%) and Paramount Global (12.5%) — now control half of US audience demand for TV content, according to data from Parrot Analytics.
In terms of content, HBO Max’s viewership of Warner Bros. Digital continues to grow rapidly. Total US demand for HBO Max’s original series has grown 102% since the first quarter of 2021, more than double the growth rate of its combined competition, according to Parrot. This is a strong leading indicator for continued subscriber growth, which should accelerate in the third and fourth quarters with the long-awaited release of “House of the Dragon” later this month, according to the research company.
While Paramount Global ranks third in business share, Paramount+ is tied for fourth in on-platform demand and stuck in seventh place in originals demand share in the US and around the world. the world. That said, Paramount+’s Originals demand share has grown for four consecutive quarters, and total demand for its Originals has grown 30 points faster than the competition since the first quarter of 2021. This coincided with an increase massive Paramount+ subscriber base, according to Parrot.
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Demand data from Parrot Analytics also shows that a hypothetical merger between the media assets of NBCUniversal and Paramount Global would create a business that accounts for 22.6% of US business demand share, or about three percentage points. more than Disney. The Warner Bros. merger. Discovery places it two points behind Disney in that category, but NBCUniversal and Paramount combined would immediately overtake Disney as the dominant media company in the United States in terms of cross-platform audience demand for television content, according to Parrot.
In the first quarter, WarnerMedia (11.7%) and Discovery Inc. (6.6%) ranked third and sixth respectively. By joining forces, Warner Bros. Discovery (17.8% in Q2) is immediately the second largest media conglomerate. Paramount Global fell to third place after its long hold on second place, behind Disney, following the merger of Warner Bros. Discovery.
Platform demand share is an indicator of which platforms are most likely to be a consumer’s default “streaming home,” according to Parrot. HBO Max holds a solid third place in platform demand share – which includes all licensed and exclusive programming available on HBO Max. Adding Discovery+’s on-platform demand to HBO Max would create a service with a 17.9% demand share, just a few points behind Hulu (19.2%) and Netflix (19.4%) . Paramount+ (8.2%) tied with Amazon Prime Video (8.2%) for fourth place. This ranking matters because polls suggest consumers are willing to pay for three to four streaming services.
Ranking in fourth place, or third if possible, is therefore crucial to the long-term viability of Paramount+ as a standalone streaming service, according to Parrot.
Total demand for HBO Max Originals has doubled since the start of 2021 with US audiences up 102%. Total demand for Originals from all other streamers increased by 44% in the same time frame, meaning demand for HBO Max Originals grew at more than double the rate of the competition, according to Parrot. The second quarter of 2022 saw a further acceleration in demand growth for HBO Max Originals – up 21.4% versus 12% for all others. This was led by the surprise hit “Our Flag Means Death”, according to Parrot. Despite ending at the end of March, the queer comedy workplace hacker increased its ratings demand in the weeks and even months after its Season 1 finale, becoming the HBO Max Original on most in demand in the second quarter of 2022 in the United States and worldwide.
Demand growth for Paramount+ Originals maintained or tracked that of all other streaming services through Q3 2021, but since Q4 2021, Paramount+ Originals have grown at a significantly faster rate than others. services, according to Parrot. Since the first quarter of 2021, the total demand for Paramount+ Originals has increased by 76%, which is significantly higher than the growth rate of all non-Paramount+ streaming originals, which increased by 46%. This was the result of a new focus on original series, led by “Star Trek: Picard”, “Star Trek: Strange New Worlds”, “Halo”, “1883”, “Mayor of Kingstown” and more. according to Parrot. While Paramount+ has a lighter supply of originals than most of its rivals, it has the highest average demand per original series of any major service over the past year, according to Parrot.
Both Paramount+ and HBO Max have seen tremendous growth in demand share for Originals over the past year, according to Parrot. In the US, HBO Max grew from 5.8% in Q2 2021 to 7.5% in Q2 2022, and Paramount+ grew from 3.4% to 5.4% over the same period. These increases in demand share have directly contributed to Netflix’s dominant position in the market, according to Parrot. Both services account for a growing share of the most requested streaming originals by US consumers.
In the second quarter of 2022, HBO Max and Paramount+ were both tied for second place (11.5% each) — behind Netflix (32.8%) — in the US share of outstanding and standout series, according to Parrot. That is, shows that sustained more than 8 times the demand of an average show in the United States for an entire quarter and were therefore in the top 2.9% of all shows.
HBO Max’s viewership is very close to the industry norm when it comes to gender breakdown, according to Parrot. The platform is slightly more male than the industry average. Discovery+, on the other hand, over-rated with women by a significant margin, likely due to its focus on unscripted lifestyle programming, according to Parrot.
Discovery+ is over-indexing with the over 40s, which will help make up for HBO Max’s strong underperformance with this segment, according to Parrot. HBO Max is over-indexing with Gen Z and Millennials, which Discovery+ currently lacks, Parrot notes.