Netflix admitted as much on Thursday saying that competition is “affecting our marginal growth some.” A dollar here or there matters to consumer’s wallets. Rivals like Disney+, Peacock and HBO Max from CNN parent’s company, WarnerMedia, are also vying for a share of consumer’s streaming budget. Netflix shares tank 20% on weak subscriber outlookįor some consumers, price increases - even small ones - are a lot to ask considering that so many competitors are at Netflix’s gates. Ryan Reynolds, Gal Gadot and Dwaye 'The Rock' Johnson star in Netflix's "Red Notice" Frank Masi/Netflix Another way is to raise prices, but that could prove difficult as fierce competition ramps up. One way the company has tried to offset its slowing growth is by investing in other verticals, such as gaming. (NFLX) will have to deal with the fact that you can’t keep adding subscribers.” However, even Shaikh pointed out that in the long term, “Netflix “They still added subs, and they still have the same high usage and viewing metrics,” he added. Zak Shaikh, vice president of programming at research-based media firm Magid, believes that Netflix’s fall is more of “a Wall Street thing” rather than “something that reflects the business is in trouble.” That’s bad news for Wall Street investors who are mostly concerned with companies’ abilities to grow. The problem with relying exclusively on subscriptions for revenue is: after a while, you run out of people who haven’t subscribed. The company is going to have to “start aggressively going after growth in developing markets,” such as India and other Asian Pacific countries, to keep moving forward, he added. Netflix is struggling to find more people to sign up in the markets it has been playing in the longest - particularly the United States - noted Nathanson. (And Disney’s growth last quarter spooked Wall Street too.) But Netflix’s growth slowed even further in the fourth quarter to just 8%. During that same period, Netflix grew just 9%.ĭisney hasn’t yet reported its financial results for the last three months of 2021. Disney had 118.1 million subscribers as of October, and it grew subscriptions 60% between October 2020 and October 2021. That’s significantly more than others in the streaming marketplace, including Disney, one of its closest competitors. Netflix ended 2021 with 221.8 million subscribers. RANDALL MINDY, JENNIFER LAWRENCE as KATE DIBIASKY. DON'T LOOK UP (L to R) LEONARDO DICAPRIO as DR.
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