The Strikes and the Streaming Industry: Did They Actually Help?

 It’s rare to see the argument for strike action improving anyone’s bottom line. While the combined SAG-AFTRA and WGA strike action last year may have had bad knock-on effects for release slates and consumers, it seems it may have had one positive for the industry as a whole- and that is for streaming. Entertainment lawyer Los Angeles Brandon Blake, from Blake & Wang P.A., has more on this unexpected little gain. 

Brandon Blake

Streaming Saturation Still Lives

After the pandemic caused the first major streaming boom we’ve seen from the relative newcomer on the distribution stage, many analysts were predicting that streaming penetration in the domestic market had reached its peak. It’s hard to imagine this as a world where anyone who wants streaming access doesn’t already have it. However, we saw a 2-3% jump in the number of US households with streaming access, topping out at 85%. When did this happen? Q4 for 2023. Coincidentally the first quarter that was free of labor unrest for 2023.

The Rise of Lower Tier Streamers

While a substantial chunk of this gain falls unsurprisingly on the shoulders of the ‘big’ streaming names like Netflix, Amazon Prime, and Disney+ (alongside Hulu), the most progress was made by smaller streaming names like Peacock, Max, and Paramount+. The only platform to see reduced growth was Apple TV+. 

This is traditionally a quarter where some momentum can be seen. Not only are their year-end plans and festivities but things like Black Friday steaming deals and the rise of the ad-supported tier will have helped, too. So where do the strikes fit into that picture?

As it turns out, the knock-on effects on the release pipeline may have caused consumers to look for more cost-effective entertainment that could still deliver fresh content. Clearly, cable reruns are not where the modern market is happy to lie! What is pretty interesting is that streaming itself is no longer a particularly cheap option, with prices rising throughout last year. 

It is a fascinating little trend within itself. While we strongly doubt we will ever see a similar climate again, it will be intriguing to see if this pattern of streaming benefiting from cable-based cord cutting continues this year.