news culture Netflix: The future looks bleak for the number 1 SVOD service!
Launched in 1997, Netflix exploded globally in the 2010s, kickstarting the massive trend of subscription video platforms. Series, anime, documentaries and films are brought together in a catalog accessible to hundreds of millions of people. But the prospects for the future are clearly worrying investors.
In the latest news Netflix had 221.8 million subscribers. A situation that allows the platform to remain number 1 for now, but the competition is getting tougher Amazon Prime Vide, HBO Max, Hulu, Paramount+ and most notably Disney+
Growth below expectations
On the other hand, the presentation of the number of subscribers and the forecasts of Netflix in terms of growth do not seem to convince investors, who are very critical of a delay in the development of the service. In the period from October to December, Netflix added 8.3 million additional subscribers, figures that could satisfy many potential competitors but not shareholders. Netflix had also hoped to hit 222 million subscribers by the start of the new year, but fails at 200,000 subscribers. rather worrying, Netflix expects only 2.5 million subscribers by the end of March, the digit the lowest since 2010, a year in which the platform had “only” 13.9 million subscribers.
(Subscriber) retention and audience remain strong, but new subscriber growth has not returned to pre-pandemic levels. We believe this is due to various factors including Covid, which continues to weigh on the economy, and macroeconomic difficulties in various parts of the world including Latin America.
Angry and concerned investors
Statements that have not reassured investors since Shares on Wall Street fell 22.8% when trading opened on Friday. We need to monitor the stock price, currently at $397.5, over the next few days to see if a recovery takes place. It’s also quite likely, and analysts are reckoning on that There’s “nothing wrong” with Netflix, but they’re struggling to attract new subscribers
There’s nothing wrong with Netflix, they just face increasingly aggressive competition. Therefore, it becomes more difficult for them to stand out and attract the public, independent analyst Robert Enderle told our colleagues from the BFM exchange.
We know this competition, namely Gain market share step by step by Netflix, in a kind of global balance of power. The failure of the series in real footage of Cowboy Bebop obviously cost a lot of money, and estimates from eMarketer suggest so these production costs will continue to rise, while market shares increase. According to the company Netflix generated 50% of the market’s revenue in 2018, a share that will be just 28% by 2023. To counteract this, Netflix is diversifying its activities and has recently started to do so online trading as well as in video games.
Through MalloDelic, journalist igamesnews.com
MP
