Streaming providers see a comeback in daily user engagement
Editor
| 10 August 2023
Reversing the downward trend that started in 2021 as competition between services began taking a toll on the amount of time that consumers can spend on each platform, streaming experienced a surge in daily engagement per user in the first half of 2023, says data from NPAW.
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The analyst’s H1 2023 Video Streaming Industry Report highlighted how streaming adoption grew substantially year-over-year for major sporting events in the first semester of the year.

The standout finding was that for the first time since 2021, the number of VOD minutes that consumers watch per day, per streaming service increased globally by 4% year-on-year. This suggests that consumers may either be focusing on a few select services or that overall consumption is rising. Global linear TV playtime per user and streaming service also increased by 3%, reversing the downward trend that began in 2021 and confirming a potential industry-wide shift.

VOD quality of experience improved globally despite bitrate stabilisation as providers achieved a significant reduction in buffering times. At the same time, global linear content quality improved in all key metrics, with a mixed picture at the regional level suggesting potential challenges in some areas.

NPAW noted that the uptick in user engagement per service, measured in daily playtime per user and service, might signal some degree of market consolidation, with consumers focusing on a select few online video platforms. Another explanation could simply be an overall increase in streaming consumption.

At the same time, streaming figures for major sports competitions continue to strengthen. The year-over-year increases in total plays, playtime, and unique users for events like Wimbledon or the NBA Finals underscore the powerful engagement power of live sporting events. It also confirms the growing trend of sports fans shifting to online video platforms and away from traditional broadcast and satellite channels.

Sports streaming continued to grow as the major sporting competitions of the first half of the year saw substantial increases in streaming adoption and engagement compared to the previous year.

“The first half of 2023 marked a potential turning point for the global video streaming industry as daily user engagement per streaming service began to increase for the first time since 2021,” said NPAW CEO and co-founder Ferran G. Vilaró. “Access to deep, actionable data insights is crucial for navigating these changes and determining whether engagement will continue to increase.”