The television industry's "Peak TV" era is officially over, with the market contracting to 75% of its former size as streaming giants pull back on spending, according to a new report from Ampere Analysis. The contraction marks a fundamental pivot from aggressive subscriber growth to a more cautious focus on profitability and sustainable business models.
By the numbers: The pullback is global, hitting some regions harder than others. The Middle East & Africa saw a staggering 43% drop in new scripted shows, while Europe and North America saw more moderate declines of 10% and 6%, respectively. Streamers are driving the downturn by ditching expensive scripted series for unscripted content, sports, and licensing.
Frenemies with benefits: As the content bubble deflates, streamers are teaming up with the linear broadcasters they once sought to replace. Deadline calls this trend "diagonal integration," with Netflix partnering with France's TF1 and Prime Video doing the same with France Télévisions, signaling a future of industry consolidation.
Pass the controller: While cutting back on big-budget series, Netflix is finding new ways to keep users engaged by rolling out a slate of party games. Titles like Pictionary: Game Night and Tetris Time Warp use smartphones as controllers, turning the streaming app into a living room entertainment hub.
The wild-west days of streaming are over. The industry is now entering a more mature, fragmented era where partnerships, diversified content like games, and a focus on profits—not just subscriber numbers—will define the winners.
Also on our radar: While streamers consolidate, "old media" is making its own moves, with Warner Bros. Discovery taking its TLC channel free-to-air in the UK. Meanwhile, some niche content areas are booming, with game-to-anime adaptations jumping 137% year-over-year. The industry is also looking to new partnerships, with the creator economy and YouTube taking center stage at major industry events.
