Video Streaming Market Is ‘Approaching Saturation,’ Study Finds

The video streaming market may be “approaching saturation” as it shows a slow growth rate for the first time, a new study has found. The study, conducted by research and consulting firm Strategy Analytics, found that US consumers will spend $6.62 billion on video streaming services in 2016, which includes Netflix, Amazon Prime and Hulu. While this might mean a $1.19 billion, or 22 percent, increase from 2015, it’s actually lower that the previous year’s increase — $1.21 billion in 2015.

Almost 60 percent of households in the US subscribe to a video streaming service. Digital media director Michael Goodman added, “we put market saturation at 85 percent of broadband households – similar to saturation levels for pay TV. Within five years, annual growth will fall below eight percent.” 53 percent of households subscribe to Netflix, followed by Amazon Prime (25 percent) and Hulu (13 percent). Nearly 40 percent are subscribed to two ore more services, according to the study.