The Streaming Content Media

Market Analysis
A brief Introduction

JIMMY COSTE YOST

December 2024
Contents
Introduction .......................................................................................................... 3

A Brief History of Entertainment Media.................................................................... 4

Pre-Internet Era ..................................................................................................... 4

Post-Internet Era ................................................................................................... 4

Principal Leading Companies in the Streaming Market ............................................. 4

Key Metrics for Streaming Platforms ....................................................................... 6

1. Subscriber Metrics ...................................................................................... 6

2. Engagement Metrics ................................................................................... 6

3. Financial Metrics ........................................................................................ 7

4. Content-Specific Metrics ............................................................................. 7

5. Marketing Metrics ....................................................................................... 7

Additional Metrics from Recent Analysis ................................................................. 7

How These Metrics Are Calculated ......................................................................... 8

Conclusion ......................................................................................................... 11

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The Streaming Content Media Market
Analysis: Brief instroduction to Evolution,
Metrics, and Leading Companies
By Jimmy Coste Yost.

Introduction
The streaming content media market has revolutionized the way audiences consume
movies, series, and other forms of entertainment. What began as a cinema-dominated
industry, followed by the rise of broadcast television and physical home video formats,
has been transformed by the advent of the internet. Today, streaming platforms
dominate, offering on-demand, customizable entertainment experiences that cater to
global audiences.

This document explores the historical evolution of the entertainment media landscape,
the leading players in the streaming industry, and the critical metrics that companies
focus on to measure success and improve user engagement.

My name is Jimmy Coste Yost. And I work for an outsourcing company which provides
analytical insights to a pushing streaming media studio in the US, which has
subscribers worldwide. Part of my job is to analyze live streaming data and provide
weekly, monthly and yearly reports on different metrics for different markets.

Here I provide a glimpse of what I have learned and how it would help others understand
better this attractive field.

All brands mentioned here are registered by their legal owners.

December 2024.

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A Brief History of Entertainment Media

Pre-Internet Era
The 20th century marked the golden age of cinema, where movies became a cultural
phenomenon. Studios like Warner Bros., Universal, and Paramount defined storytelling
standards, while theaters became social hubs for communities. The introduction of
television in the mid-century further expanded accessibility, making movies and
serialized programming available in living rooms.
In the 1980s and 1990s, physical media such as VHS tapes, DVDs, and Blu-ray discs
became the dominant way to consume entertainment at home. Rental chains like
Blockbuster thrived during this era, catering to the growing demand for convenient
access to movies.

Post-Internet Era
The internet introduced a paradigm shift in entertainment delivery. As broadband
penetration increased globally, platforms like YouTube (launched in 2005) showcased
the potential of digital streaming. Netflix, initially a DVD rental company, pivoted to a
streaming model in 2007, setting the stage for the modern streaming era. The rise of
smartphones and connected devices further fueled this shift, thanks to initially web
2.0, but later with Industry Revolution 4.0, we had telecommunications technologies
like HDSPA, 3,4, LTE and 5G, enabling audiences to access content anytime, anywhere.
Today, streaming platforms offer vast libraries of content, catering to diverse tastes and
preferences. Globalization, data-driven personalization, and technological
advancements such as 4K and HDR have further enhanced the streaming experience.

Principal Leading Companies in the Streaming Market

1. Netflix

o Founded: 1997

o Key Strengths: Global reach, extensive content library, data-driven

personalization.

o Notable Productions: Stranger Things, The Crown, Squid Game.

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 o Metrics of Focus: Subscriber growth, engagement hours, churn rate,
original content success.

2. Amazon Prime Video

o Founded: 2006
o Key Strengths: Integration with the Amazon ecosystem, investments in
premium content.

o Notable Productions: The Marvelous Mrs. Maisel, The Boys, Lord of the
Rings: The Rings of Power.

o Metrics of Focus: Prime subscriptions, content ROI, global expansion.

3. Disney+

o Founded: 2019

o Key Strengths: Strong legacy brands (Marvel, Pixar, Star Wars), family-
oriented content.

o Notable Productions: The Mandalorian, Loki, Encanto.

o Metrics of Focus: Subscriber growth, franchise-driven engagement,
international reach.

4. HBO Max (Warner Bros. Discovery)

o Founded: 2020

o Key Strengths: Premium storytelling, award-winning content.

o Notable Productions: Game of Thrones, Succession, The Last of Us.

o Metrics of Focus: Average Revenue Per User (ARPU), retention rates,
critical acclaim.

5. Apple TV+

o Founded: 2019

o Key Strengths: High-quality original productions, integration with Apple

devices.

o Notable Productions: Ted Lasso, Severance, The Morning Show.

o Metrics of Focus: Viewer acquisition, critical success, user ecosystem
integration.

6. Hulu (Owned by Disney)

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 o Founded: 2007

o Key Strengths: Diverse content mix (originals, network TV, live TV

options).

o Notable Productions: The Handmaid’s Tale, Only Murders in the

Building.
o Metrics of Focus: Ad-supported subscription growth, content
engagement.

7. Others

o Peacock (Comcast), Paramount+ (ViacomCBS), YouTube,

Crunchyroll, and regional players (e.g., Tencent Video in China,
Hotstar in India) also hold significant market shares and cater to niche
or localized audiences.

Key Metrics for Streaming Platforms

In the streaming content media market, metrics are grouped by their focus on
engagement, conversion, retention, and content performance. Below, the metrics
are categorized, explained, and provided with formulas for calculation in spreadsheets
and Python.

1. Subscriber Metrics
• Subscriber Growth: Measures the net gain in subscribers over time.
• Churn Rate: Percentage of subscribers who cancel their subscriptions within a
given period.
• Subscriber Acquisition Cost (SAC): Cost associated with acquiring new
subscribers.

2. Engagement Metrics
• Viewing Hours: Total hours streamed by users, indicating platform
engagement.
• Monthly Active Users (MAUs): Number of unique users who interact with the
platform monthly.
• Completion Rate: Percentage of viewers who finish watching content, often
used to gauge content quality.

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3. Financial Metrics
• Average Revenue Per User (ARPU): Revenue generated per subscriber.
• Content ROI: Return on investment for original and licensed content.
• Lifetime Value (LTV): Revenue potential of a subscriber over their expected
duration with the platform.

4. Content-Specific Metrics
• Title Popularity: Viewer counts for specific movies or series.
• Genre Preferences: Identifies the most-watched genres across demographics.
• Original vs. Licensed Content: Performance comparison between original
productions and licensed properties.

5. Marketing Metrics
• Conversion Rate: Percentage of free trial users who convert to paid
subscribers.
• Campaign ROI: Effectiveness of marketing campaigns in driving subscriptions
or engagement.
• Traffic Sources: Insights into whether users arrive from organic searches, ads,
or referrals.

Additional Metrics from Recent Analysis

1. Variance

o Reflects the percentage difference between forecasts and actuals, such

as new free trial activations or conversions to paid accounts.

2. Gained Percentage

o Tracks the proportion of users who converted during a specific period,

useful for measuring weekly or monthly trends.

3. Churn Rate Variance

o Compares current churn rates with historical averages or forecasts,

offering insights into retention efforts.

4. Winback Rates

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 o Measures the effectiveness of campaigns targeting users who
previously unsubscribed.

5. Active Rates

o Captures the percentage of subscribers actively using the service,

indicating engagement and content relevance.

How These Metrics Are Calculated

Engagement Metrics

These metrics track user interaction with the platform, indicating how effectively the
platform captures user interest.

1. Active Rate

o Definition: Percentage of active users compared to total users in a

given period.

o Formula:

o Spreadsheet Formula: = (Active_Users / Total_Users) * 100

o Python Code:

active_rate = (active_users / total_users) * 100

2. New Free Trials (NFT)

o Definition: Number of new users starting a free trial during a period.

o Formula: Direct count from data.

o Spreadsheet Formula: Use =COUNTIF(range, "Free Trial").

o Python Code:

new_free_trials = len([trial for trial in data if trial['status'] == 'Free Trial'])

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Conversion Metrics

These metrics measure how effectively the platform turns free trial users into paying
customers.

1. Conversion to Paid

o Definition: Percentage of users who convert from free trials to paid

subscriptions.

o Formula:

o Spreadsheet Formula: = (Converted_to_Paid / New_Free_Trials) * 100

o Python Code:

conversion_rate = (converted_to_paid / new_free_trials) * 100

2. Variance in Conversion

o Definition: Difference between actual conversions and forecasted

conversions, expressed as a percentage.

o Formula:

o Spreadsheet Formula: = ((Actual - Forecast) / Forecast) * 100

o Python Code:

variance = ((actual - forecast) / forecast) * 100

Retention Metrics

Retention metrics evaluate the platform’s ability to keep existing customers and
minimize churn.

1. Churn Rate

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 o Definition: Percentage of users who cancel their subscription during a
period.

o Formula:

o Spreadsheet Formula: = (Users_Canceled / Active_Users_Start) * 100

o Python Code:

churn_rate = (users_canceled / active_users_start) * 100

2. Winbacks

o Definition: Users who canceled a subscription and returned during a

given period.

o Formula: Direct count from user data.

o Spreadsheet Formula: Use =COUNTIF(range, "Winback").

o Python Code:

winbacks = len([user for user in data if user['status'] == 'Winback'])

Content Performance Metrics

These metrics evaluate the success of specific titles or campaigns in driving user
activity.

1. Content Engagement (by Title)

o Definition: Measure of user interactions (e.g., views, time spent) on

specific content.

o Formula:

o Spreadsheet Formula: = (Total_Views / Active_Users) * 100

o Python Code:

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engagement_rate = (total_views / active_users) * 100

2. Promoted Content Conversion

o Definition: Percentage of promoted titles that lead to new free trials or

paid subscriptions.

o Formula:

o Spreadsheet Formula: = (Conversions / Total_Promotions) * 100

o Python Code:

conversion_from_promotions = (conversions / total_promotions) * 100

Insights Integration

These metrics can be combined in dashboards or visualizations to reveal deeper

insights into the platform’s performance:

• Compare active rates and churn rates to measure the net user growth.

• Analyze the conversion to paid alongside content engagement to evaluate

campaign effectiveness.

• Monitor winbacks to refine strategies targeting previously canceled users.

By grouping metrics and including practical formulas, organizations can effectively

measure, monitor, and optimize their streaming services, ensuring data-driven
decisions across all key performance areas.

Conclusion
The streaming content media market is a dynamic, data-driven industry where leading
companies compete to attract and retain audiences through innovation, quality
content, and personalized experiences. Understanding the interplay of key metrics
provides insights into platform strategies and the evolving preferences of global

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audiences. As competition intensifies, companies must continue to refine their metrics
and adapt to market demands, ensuring long-term growth and relevance in an ever-
changing digital landscape.

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