— an Analysis of Streaming App Market Trends and Top Apps in the U.S. © 2021 Sensor Tower Inc
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The State of Streaming Apps — An Analysis of Streaming App Market Trends and Top Apps in the U.S. © 2021 Sensor Tower Inc. - All Rights Reserved Table of Contents 03 - Market Overview: United States 09 - Top Streaming Apps 17 - Streaming Monetization 24 - Conclusion Market Overview: United States — An Overview of Streaming Apps in the U.S. © 2021 Sensor Tower Inc. - All Rights Reserved U.S. Streaming Apps Surpassed 81 Million Installs in Q1 2021 U.S. quarterly downloads of top 30 streaming apps on the App Store and Google Play App Store Google Play 100M Streaming apps experienced their best quarter in Q4 2019, with the top 30 surpassing 88 90M million downloads in the United States. The +13% launch of Disney+ was the main contributor to 80M this record growth. 70M 36M 29M Despite seeing a drop in 1Q20 following their +37% 31M 60M 29M 29M record quarter, streaming app adoption climbed 28M +12% consistently quarter-over-quarter in 2020. Top 50M streaming apps surpassed 81 million downloads in Q1 2021, soaring 13 percent year- 23M 22M 21M 40M 20M over-year. 20M 20M 19M 30M 52M 52M 47M 48M 44M 46M 20M 30M 31M 30M 31M 27M 26M 28M 10M Note Regarding Downloads Estimates: 0 Download estimates are the aggregate downloads of the top 30 streaming apps in the U.S. in 2020. Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Market Overview U.S. 4 © 2021 Sensor Tower Inc. - All Rights Reserved HBO Max Surpassed Competitors as the Most Downloaded Streaming App in 1Q21 Top streaming apps by U.S. downloads on the App Store and Google Play 2018 2019 2020 1Q21 Netflix Netflix - Netflix - HBO Max 1 Netflix 1 Netflix 1 Netflix 1 AT&T +5 Hulu Disney+ NEW Disney+ - Netflix -1 2 Hulu 2 Disney 2 Disney 2 Netflix Amazon Prime Video Hulu -1 Hulu - Disney+ -1 3 Amazon 3 Hulu 3 Hulu 3 Disney Amazon Prime Video Amazon Prime Video Twitch -1 - Hulu -1 4 Amzon 4 Amazon 4 Amazon 4 Hulu Amazon Prime Video Tubi Tubi - Tubi - -1 5 Fox Corporation 5 Fox Corporation 5 Fox Corporation 5 Amazon YouTube Kids Pluto TV NEW HBO Max NEW Discovery+ NEW 6 Google 6 ViacomCBS 6 AT&T 6 Discovery 7 ESPN 7 ESPN - 7 Twitch +1 7 Tubi -2 Disney Disney Amazon Fox Corporation 8 STARZ 8 Twitch -4 8 Pluto TV -2 8 Twitch -1 Lions Gate Amazon ViacomCBS Amazon 9 YouTube TV 9 YouTube Kids -3 9 YouTube Kids - 9 Peacock TV NEW Google Google Google NBCUniversal 10 DIRECTV 10 YouTube TV -1 10 ESPN -3 10 Paramount+ NEW AT&T Google Disney ViacomCBS Market Overview U.S. 5 © 2021 Sensor Tower Inc. - All Rights Reserved Streaming App MAU Grew by 36 Percent During COVID-19 Monthly active user (MAU) growth vs. January 2019 for top streaming apps MAU Growth Disney+ Launch Early Pandemic 40% The top 10 streaming apps saw 36 percent growth in monthly active users during April 2020 compared to January 2019, amid the enforcement of stay-at-home orders across the United States. MAU has decreased from this 30% peak but has remained above pre-pandemic levels into 2021. The Disney+ launch in late 2019 was significant 20% enough to boost MAU to 17 percent above the 36% January 2019 total. However, the impact of the 31% pandemic was even more pronounced than the 28% 28% 27% 28% 25% launch of Disney+. 24% 24% 23% 24% 22% 22% 10% 17% 17% 14% 12% 8% 6% 6% 6% 6% 5% 5% 4% Note Regarding Monthly Active Users: 2% 0% Monthly active users reflect activities at the app-user level and are aggregate for the top 10 streaming apps by U.S. downloads in 2020. MAU growth is compared to January 2019. Jan-19Feb-19Mar-19Apr-19May-19Jun-19Jul-19Aug-19Sep-19Oct-19Nov-19Dec-19Jan-20Feb-20Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20Oct-20Nov-20Dec-20Jan-21Feb-21Mar-21 Market Overview U.S. 6 © 2021 Sensor Tower Inc. - All Rights Reserved Streaming App Revenue Climbed 48 Percent in the Last Year U.S. quarterly gross revenue of streaming apps on the App Store and Google Play App Store Google Play $700M The top 30 grossing streaming apps reached $605 million in consumer spending in Q1 2021, soaring 48 percent year-over-year as the services $600M added users during stay-at-home orders. +48% $174M $500M App Store user spending made up more than $147M 70 percent of streaming app revenue growth in $121M 2020. Despite accounting for a smaller $400M +26% proportion of revenue, Google Play streaming +21% $101M $84M app revenue share grew nearly five percentage $93M $39M $40M points in Q1 2021 year-over-year, from 25 $300M $38M $53M $54M $35M percent in 2020. $32M $431M $200M $405M $370M $307M $317M $300M $285M $286M $267M $285M $273M $269M $236M $100M Note Regarding Revenue Estimates: $0 Revenue figures are gross revenue (including the cut taken by Apple or Google). Revenue estimates are the aggregate revenue of the top 30 streaming apps in the U.S. in 2020. Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Android app estimates represent revenue from the Google Play Store only. Market Overview U.S. 7 © 2021 Sensor Tower Inc. - All Rights Reserved Disney+ Saw the Highest Revenue Among Streaming Apps Since Launch Top streaming apps by U.S. revenue on the App Store and Google Play 2018 2019 2020 1Q21 Netflix Netflix - Disney+ +4 Disney+ 1 Netflix 1 Netflix 1 Disney 1 Disney - HBO Max HBO Max - Netflix -1 Twitch +1 2 AT&T 2 AT&T 2 Netflix 2 Amazon Hulu Hulu - Twitch +5 HBO Max +1 3 Hulu 3 Hulu 3 Amazon 3 AT&T YouTube TV ESPN NEW HBO Max -2 ESPN +2 4 Disney 4 Disney 4 AT&T 4 Disney STARZ Disney+ NEW Hulu -2 Hulu - 5 Lions Gate 5 Disney 5 Hulu 5 Hulu Paramount+ STARZ -1 ESPN -2 Netflix -4 6 ViacomCBS 6 Lions Gate 6 Disney 6 Netflix 7 MLB 7 YouTube TV -3 7 STARZ -1 7 Crunchyroll +1 MLB Disney Lions Gate AT&T 8 SHOWTIME 8 Twitch +2 8 Crunchyroll NEW 8 STARZ -1 ViacomCBS Amazon AT&T Lions Gate 9 Crunchyroll 9 Paramount+ -3 9 Paramount+ - 9 Paramount+ - AT&T ViacomCBS ViacomCBS ViacomCBS 10 Twitch 10 DAZN NEW 10 Amazon Prime Video NEW 10 Funimation NEW Amazon DAZN Amazon Funimation Market Overview U.S. 8 Streaming App Trends: United States — Trends of Streaming Apps in the U.S. © 2021 Sensor Tower Inc. - All Rights Reserved Disney+ Downloads Spiked in the First Month of Launch Monthly U.S. downloads of top streaming apps Netflix and Disney+ surpassed 4 million Disney+ Netflix Amazon Hulu Tubi Twitch Prime Video downloads in March 2020, immediately after the 7M outbreak of COVID-19. Top streaming services saw a collective boost in adoption in the first few 6M months into the pandemic. The adoption boost lasted through June 2020 when COVID-19 5M restrictions eased in multiple states. Disney+ saw another adoption peak in 4M December 2020, surpassing 3.7 million downloads during a month of hot releases and 3M holiday movies. Since its app launch in November 2019, Disney+ has been experiencing download surges during the releases of top shows and 2M movies. This was especially true amid the closure of public movie theaters and the app enabled 1M subscribers to stream new Disney movies in 2020 from mobile devices. 0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Streaming App Trends 10 © 2021 Sensor Tower Inc. - All Rights Reserved HBO Max Accounted for the Highest Market Share in 1Q21 Proportion of U.S. installs among top 10 streaming apps HBO Max Netflix Disney+ Hulu Amazon Prime Video Tubi Twitch Other Netflix and Disney+ accounted for 30 percent of the market share among the top 10 streaming apps combined. Despite operating in a 3% 32% 17% 14% 8% 9% 16% 2018 competitive space, the two streaming services led the market by download in 2020. Among the streaming app competitors, HBO Max 3% 22% 17% 15% 12% 8% 5% 18% also experienced fast-paced growth. HBO Max 2019 market share grew by 10 percentage points from 2020 to 1Q21, accounting for 18 percent of the download share among top U.S. streaming apps. 8% 18% 18% 13% 11% 8% 8% 15% 2020 18% 14% 14% 12% 11% 9% 9% 12% Note: Q1 2021 Market share is calculated among the top 10 streaming apps by U.S. downloads in 2020. 0% 25% 50% 75% 100% Streaming App Trends 11 © 2021 Sensor Tower Inc. - All Rights Reserved Disney+ Found Success Through Top Ad Networks Disney+’s share of voice on top mobile ad networks by quarter compared to downloads Apple Search Ads YouTube AdMob AppLovin MoPub Downloads 1.2% 30M Disney+ used ad campaigns to boost its launch, with especially pronounced advertising during its first quarter in Q4 2019. The app has seen 1% 25M positive results from its advertising via Apple Search Ads and YouTube, where its share of voice was the highest. 0.8% 20M Disney+’s share of voice on Apple Search Ads was Downloads highest in the first quarter of 2020, where it 0.6% 15M reached 1 percent SOV among all advertisers in Downloads the quarter.