What’s Next for Streaming Services?

Good morning, Nerders. It’s Friday, July 12th. In today’s newsletter, we cover:

• Why streaming services are raising prices

• Which luxury cars are still in high demand

• How online shopping is saving malls

TODAY’S STORY

What’s next for streaming services? Higher prices.

Last week, Max (FKA HBO Max) raised prices for some of their subscribers.

Streaming businesses have been chronically unprofitable, and investors are losing their patience. After years of chasing top-line revenue and subscriber growth, investors want to see them turn a profit.

One thing they have going for them is that these businesses have turned out to be “stickier” than many predicted. Q1 2024 churn rates:

• Netflix: 2%; Apple TV+: 8%; Hulu: 5.8%; Disney+: 4.8%; Amazon Prime: 4%; Max: 6.5%

Subscribers tend to stick around not only because of brand loyalty but also because there is a hidden switching cost. Younger generations share a positive sentiment toward algorithms and their ability to learn and mirror their preferences. Many consumers may hesitate to move on from a particular streaming service because its algorithms have learned their preferences.

Unfortunately, prices going up is the only thing I’m sure about these days.

OUR PICKS

Here are today’s recs to help you live a smarter life…

1. Cool off in the pool.

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2. Ideal for summer fishing, hunting, or camping.

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3. Start gardening with the perfect beginner set.

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DATA BYTES

• Americans bought a total of 15.5MM new cars, trucks, and SUVs in 2023, according to analysts at S&P Global Mobility

• German manufacturers BMW, Mercedes, and Audi still maintain strong positions in the U.S. luxury car market

#SHORTS

Retailers are increasingly relying on their shops at malls to serve as fulfillment hubs

Watch on: TikTok, YouTube, Instagram

PREVIOUS STORIES

• How Netflix Solved Its Password-Sharing Problem — Netflix added 22 million subscribers in 2023 from its password-sharing crackdown.

• 🇯🇵 Japanese 7-Elevens — 7-Eleven is refining its business amid underlying trends in the U.S. convenience store market, drawing inspiration from its Japanese stores.

• Meta’s Copycat Machine — Instagram beat TikTok in growth and downloads in 2023.

• Subscriptions come for everything, even sleeping — Businesses are now trying to implement subscription models at grocery stores and to improve sleep quality.

• Apple Pay or We Don’t Pay — 78% of Gen Zers say they’d stop shopping at merchants that don’t accept digital wallets like Apple Pay and Google Wallet.

To read the web version of previous stories, click here

If you have any comments or feedback, just respond to this email.

Thanks for reading,
Kieran & Justin Ryan