Netflix: Subscription loss may trigger M&A plans


Everyone likes to watch Netflix, the most popular streaming service in the world. Compared with the previous year, revenue in the last quarter increased by nearly one-fifth, and net income almost doubled.however gloom The financial outlook of the company has been resolved. Competitors Disney and Amazon are building an impressive library of TV and movie content. Netflix should consider buying its own studio.

This year’s subscription growth can never be compared with the surge in lock-in drives in 2020. Netflix added 1.5 million net new users in the second quarter. Although higher than its own low forecast, it failed to attract people like 10 million in the same quarter last year. Pessimists complain that North America and Canada have lost nearly half a million users—the first decline in two years.

Netflix needs more and more customers in the wealthiest countries in the world who can withstand price increases and increase profits. In the past two years, the average income per member in the United States and Canada has increased by $2 to $14.54. In Latin America, this is half.

The slowdown in subscriptions is not just due to difficulty. According to data released by Nielsen in June, streaming services now take up more viewer time than broadcast television. Netflix has content issues. It lacks new blockbusters, original hits. Analysis startup Parrot Analytics’ subjective measurement of “demand interest” (including Google search and social media) shows that competitors such as Disney have weakened interest in Netflix.

Netflix spent $8 billion on content in the first half of this year. There may be new hits in the second half. It also has a Disney-like plan to monetize intellectual property through e-commerce stores and video games. But the competition is fierce. Amazon, Apple, Google and Facebook are also investing a lot of money in the game field.

Why not buy a studio? Disney acquired 20th Century Fox and Amazon is acquiring MGM.Lionsgate, an independent film studio with US$3.5 billion in equity, has assets such as twilight And the small streaming service Starz. Netflix should consider buying more content through Hollywood studios before all content is snapped up.

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