Investors alarmed as streaming services lose their magic touch

What was a red-hot outlook is cooling rapidly as market saturation coincides with a squeeze on household budgets

The end of the pandemic-fuelled home entertainment boom that has driven record breaking growth for Netflix and its rivals has revealed an uneasy truth - the streaming revolution has peaked.

The market is facing a perfect storm as, after a decade of making easy converts, streaming companies are seeing dramatically slower growth and increasing competition fuelling an unsustainable content war, just as stretched household budgets prompt consumers to start cutting back on entertainment services.