In this Q1 2023 streaming TV review, we dig into who’s up, who’s down, and who’s a pick ‘em, and where they might be headed.
Companies up in the quarter (3:00)
Netflix (3:10)
Netflix had a good Q1, gaining subs overall and only suffering a minor loss in the US and Canada. Revenue also grew strongly. We also think introducing an ad tier and the forthcoming credential-sharing curbs are good moves from the business perspective.
Roku (5:00)
Roku grew the number of active users strongly over the year, but ARPU decreased. That said, platform revenue (which is dominated by advertising) was only down slightly.
YouTube (7:30)
Ad revenue was down 2.5% in the first quarter, a good achievement in a down market.
Amazon (8:00)
Amazon’s ad business was up 21% in Q1 to $9.5 billion. It also says it will license its originals to other providers. We aren’t sure who in the US will be interested, but
The Trade Desk (9:00)
Companies down in the quarter (12:00)
Dish Network (12:10)
Dish Satellite lost over 500,000 subscribers, and Sling TV was also down by 240,000. A bright spot for the company was its Sling TV Freestream FAST service. It is adding channels and users, growing along with the rest of the FAST market.
Tegna (13:40)
The traditional TV broadcast saw ad revenue decline 13% year-over-year.
Diamond Sports (15:20)
Diamond Sports filed for bankruptcy in July 2022, and their business continues to unwind. The Phoenix Suns tried to do a deal with a local broadcaster, but the bankruptcy judge blocked it.
Paramount (17:00)
Paramount announced it would cut 25% of its entertainment headcount.
Pick ‘em companies (19:00)
Disney (19:20)
Disney gained Disney+ subscribers globally but lost them in the US for the first time. However, it was only a small decrease, which the company blamed on a price increase.
Vizio (21:15)
Vizio continues to see strong growth in APRU and revenue growth for its Platform+ business, where ad revenue appears. However, the performance of the TV device business was a disaster. We discuss why Vizio is more vulnerable than Roku. One of the key differences is that Roku has a robust TV OS licensing business. Also, Roku has a strong streaming media player (SMP) business. The SMPs and TVOS businesses help drive Roku’s active users and ad business. Vizio has neither of these businesses to help its growth.
We discuss the dynamics of the smart TV and the streaming stick and box market.
AMC (35:00)
The company has a lot of interesting content but is also cutting staff and looking for ways to make its streaming businesses profitable.
Comcast (35:40)
Comcast suffered terrible video subscriber losses in Q1, but ARPU remains strong. Broadband growth has slowed but is very profitable. Peacock is making huge losses but continues growing subscribers and its market reach.
