A seismic shift is underway in the global streaming industry. 2023 marks the end of the battle for supreme dominance and subscriber numbers, and the beginning of sustainability through new business models tailored to today’s cost-conscious consumers.

Leading the charge is Netflix. After a battering from investors last year amid slowing growth, the streaming giant has roared back — adding over 1 million UK subscribers in 2023 through crackdowns on password sharing and launching a cheaper ad-supported subscription.

“There is Netflix and then there is sort of everyone else,” says Tom Harrington of Enders Analysis. “Everyone except Netflix is making losses quarter by quarter. While Netflix hasn’t of course yet balanced its billions in losses it is now making profits and will catch that up pretty quickly now.”

In stark contrast, Disney+, which once harbored ambitions of overtaking Netflix’s 250 million global subscribers, has floundered. Its growth has almost halved, losses have ballooned over $11 billion, and the company’s talismanic returning CEO Bob Iger has embarked on a drastic $7.5 billion cost-cutting drive.

In the most symbolic reversal, Disney will now start licensing shows to Netflix again — an admission that the strategy of siloed “walled garden” streaming services is unsustainable.

Similarly, David Zaslav at Warner Bros. Discovery has criticized streaming’s “crazy” business model while axing shows and seeking to license more content out amid $5 billion cuts.

“Viewers have been bingeing content that is now more expensive than ever to create despite the history of TV and film being all about ‘windows’ of commercializing content on different platforms to make them pay over and over again for years,” says Harrington. “It just hasn’t been profitable.”

With the boom years behind them and most households now signed up, the total subscribers being added to UK streaming services will halve next year according to projections. As Apple hikes prices by 33%, consumers will find it harder to justify multiple services lacking the pull of Netflix or Disney.

One fundamental remains amid the upheaval — content is still king. Netflix will continue investing billions in series and films to fuel further growth. As the streaming wars move firmly into a new era, consumer willingness to pay will come down to one key factor — having stuff they want to watch.