Streaming Services Face Reality: More Users, But No More Money

Have you noticed your friends talking more about concerts than Netflix shows lately? You're not alone. A surprising trend is reshaping how we spend our entertainment dollars.

The streaming industry faces an unexpected problem: while services like Netflix, Disney+, and others keep adding subscribers, they're not actually making more money. Why? Because these new subscribers aren't really "new" — they're just people canceling their cable TV subscriptions (traditional TV service through a cable company) and switching to streaming.

Where's the money going instead? According to research firm MoffettNathanson, people are spending their extra cash on live experiences: • Concert tickets (like Sabrina Carpenter's tour that earned $77.4 million in 2025) • Movie theater visits • Sports games • Other in-person events

Analyst Robert Fishman explains: "Many consumers are directing discretionary spend (money left over after paying for necessities) toward out-of-home experiences." This shift started after the pandemic ended, when people were eager to get back to real-world activities.

What this means: The streaming market isn't actually growing — it's just changing shape. People are moving from cable to streaming, but the total amount of money spent on home entertainment stays the same. Meanwhile, companies that sell tickets to live events are seeing real growth.

For investors, this suggests that entertainment companies focused on live experiences might offer better opportunities than streaming services, which may have hit their growth ceiling.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/why-spending-on-streaming-services-has-stalled-even-as-subscriber-numbers-grow-a764aa3c?mod=mw_rss_topstories