Netflix is losing steam as rival OTT services light up the streaming space: forecast

According to a new survey from eMarketer, approximately 182.5 million people in the U.S. will view content via subscription over-the-top (OTT) services this year, about 55.3% of the U.S. population. And while Netflix undoubtedly reigns supreme in the streaming space – with viewership reaching 158.8 million in 2019 – intensifying competition is prompting a drop in the streaming giant’s OTT subscription users.

Is a ‘Netflix killer’ entering the streaming space?

Netflix is expected to exhibit strong growth for the remainder of the year, thanks in large part to the company’s investments in a slate of successful original shows. However, eMarketer forecasting analyst Eric Haggstrom notes that, while a ‘Netflix killer’ is yet to enter the streaming space, competition is nonetheless intensifying.

“Netflix has faced years of strong competition for viewers, coming from streaming video platforms, pay TV services and even video games,” says Haggstrom. “While there is no true ‘Netflix killer’ on the market, Disney’s upcoming bundle with Disney+, Hulu and ESPN+ probably comes closest. Netflix’s answer has been to stick to what has made it the market leader – outspending the competition on both licensed and original content, offering customers a competitive price.”

Netflix’s loss, of course, is its rivals’ gain. eMarketer expects Hulu to reach 75.8 million viewers this year and Amazon Prime to remain the second-largest subscription OTT provider by viewers in the U.S. And with Disney+ rounding the corner on November 12, competition is about to get even tougher.

Olivia Balsamo is a writer and producer at Yahoo Finance. Follow her on Twitter:@BalsamoOlivia.

Read more:

White House ‘incompetence’ on the U.S.-China trade war is concerning investors: William Cohan

‘We are at war with China’ over cyber technology, says Tom Siebel

'Medicare for All' would be a ‘major disruption,’ says EventShares CIO

Retail businesses 'have to be aware' of China, says Shopify COO

Author explores Koch Industries, a company that specializes in the stuff that underpins civilization