Niche Streaming Platforms Find Their Footing Amidst Industry Giants.
As major direct-to-consumer platforms grapple with high churn rates—subscribers frequently unsubscribing—specialized services like Crunchyroll, Shudder, Acorn TV, and Cineverse are discovering a promising path forward.
Streaming has become a fiercely competitive industry. While studies indicate consumers typically subscribe to about four streaming services, Netflix often secures one of those spots, leaving little room for other players. However, beyond the spotlight of industry giants like Netflix, Prime Video, Disney+, Max, Peacock, and Paramount+, a vibrant ecosystem of niche streaming platforms is thriving, targeting dedicated fan bases with specialized content.
Despite the dominance of big streaming platforms, boutique and specialty streamers are carving out niches, catering to loyal and engaged audiences. New entrants continue to emerge in this space. For instance, in the comedy sector, Dropout—originating from College Humor—and recent subscription services launched by BuzzFeed veterans-turned-YouTubers, The Try Guys, and Watcher, aim to monetize their dedicated YouTube audiences more effectively.
Sony's Crunchyroll, focused on anime, boasts 13 million subscribers. AMC Networks runs horror-centric Shudder and British-focused Acorn TV. Cineverse offers the horror service Screambox and the independent film service Fandor. Erick Opeka, president and chief strategy officer of Cineverse, notes that major companies can't delve deep enough to serve specific fan bases effectively. Cineverse itself has 1.4 million subscription video-on-demand subscribers.
These niche platforms do not aim for hundreds of millions of subscribers. AMC's suite of niche streamers, for instance, collectively has 11.2 million subscribers. Instead, these platforms seek to attract enough engaged fans to build sustainable businesses. Sam Reich, CEO of Dropout, emphasizes that subscriptions are the best business model for lower- or middle-tier media companies, based on his extensive experience in ad sales and television.
The niche focus of these streaming services fosters subscriber loyalty, even as they churn through broader offerings. Guy Bisson, managing director at streaming data firm Ampere Analysis, highlights that niche interests create loyalty and engagement, a challenge for more generalist services. This advantage is evident in platforms like Dropout or The Try Guys' 2nd Try, which offer light, comedic content.
Reich believes that big networks struggle to produce smaller, charming shows. High-budget productions like “Only Murders in the Building” dominate mainstream platforms, while niche comedy streamers can create smaller, engaging content.
Keith Habersberger of The Try Guys sees a unique opportunity for digital creators to redefine storytelling with diverse perspectives. However, niche streamers face significant challenges, particularly in technology and content budgets. While giants like Disney and Netflix invest billions in technology and content, smaller streamers often rely on off-the-shelf technology and have far smaller content budgets.
Bisson notes the key challenge for niche services is maintaining a sufficient volume of content to justify subscription fees. Zach Kornfeld of The Try Guys adds that success hinges on consistently delivering great entertainment to attract and retain subscribers.
Niche services must stay lean, maintaining tight budgets and small staffs to achieve profitability—a stark contrast to the losses incurred by big streamers trying to compete with Netflix. This lean approach allows for experimentation and gradual growth but also demands cautious, strategic decision-making.
Cineverse's Opeka quips that their original content budgets are minuscule compared to Netflix's massive productions. Reich emphasizes the importance of making shows they can afford, avoiding the pitfall of trying to compete directly with big players.
Niche streaming operates on a smaller scale, offering a sustainable career path for creators amidst the consolidation of mega streamers. These platforms represent a promising, focused alternative in the crowded streaming landscape.
