How could the shift of users from Netflix to Instagram affect Apple TV?
Apple TV may gain market share as Netflix engagement declines The shift of user engagement away from Netflix toward platforms like Instagram is correlated with a measurable decline in Netflix's viewership. Sensor Tower data cited in the reports showed that the total time people spent on the Netflix mobile app fell by 20% year over year in the U.S. during the third quarter. This decline in Netflix's market standing, which saw its share of U.S. TV viewing fall from 8.8% to 7.8% over the last twelve months, could allow competing services, including Apple TV, to capture viewers and increase their own market presence.
- Effect
- Mild positive
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- When
- Within months
- The story
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How it reaches Apple TV
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Reports indicate users are spending less time on the Netflix mobile app. Sensor Tower data cited by Goldman Sachs showed that the total amount of time people spent on the Netflix mobile app fell 20% year over year in the U.S. during the third quarter, and 7% globally. Furthermore, Nielsen’s Gauge report noted that Netflix’s share of U.S. TV viewing fell from 8.8% to 7.8% over the last twelve months, while YouTube added about 80 basis points.
The full event1independent outlet -
As a direct competitor in the streaming market, Netflix's reduced engagement and falling market share (which dropped from 8.8% to 7.8% of U.S. TV viewing over the last twelve months) weakens its competitive standing. This creates an opportunity for other streaming services, such as Apple TV, to attract viewers.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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video streaming service by Apple Inc.
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The facts so far
As reported. Each one links to where it comes from.
- The total amount of time people spent on the Netflix mobile app fell by 20% year over year in the U.S. during the third quarter.aol.com
- Netflix’s share of U.S. TV viewing fell from 8.8% to 7.8% over the last twelve months.aol.com
- The total amount of time people spent on the Netflix mobile app reduced by 7% globally.aol.com
Why it matters
The streaming market is highly competitive, with services like Netflix, Apple TV, and YouTube constantly vying for viewer attention and market share. For Apple TV, which operates within a broader ecosystem, any weakening of a major competitor like Netflix represents a potential opportunity to increase its subscriber base and revenue.
This trend is part of a larger shift in media consumption, where users are diversifying their entertainment habits across various platforms, including social media sites like Instagram. The reports show that competitors like YouTube have been gaining ground, adding about 80 basis points to their share of U.S. TV viewing over the last twelve months.
What we don't know yet
- How quickly will Apple TV be able to convert potential viewers from Netflix into subscribers?
- Will the decline in Netflix engagement be sustained or temporary?
Is this still moving?
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
What would change this answer
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Beyond this explainer
Questions worth asking
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About Hulu
Given the decline in Netflix's viewership, how might Hulu's current market position change in relation to Apple TV?
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About Prime Video
If Netflix loses viewers to platforms like Instagram, how might Prime Video leverage this shift against Apple TV?
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Other possible ripples from the same event.
Reporting
- aol.comOct 3
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.