Has Netflix Customer Base Continued to Grow
Dhe video streaming service Netflix has published quarterly figures, 209 million subscribers worldwide are now watching. This means that Netflix is still the measure of all things in the streaming business. However, the service is now growing much more slowly than in 2020 – just 1.5 million new customers were added in the past three months.
In the same quarter of the previous year, the service benefited greatly from the global quarantine regulations and won ten million customers. In the core market of the USA, the number of subscribers is even stagnating; a plateau seems to have been reached here. However, Netflix is currently benefiting from the boom in the first year of the pandemic: profits increased by almost 90 percent to 1.4 billion dollars, thanks to revenue of 7.3 billion dollars per quarter, almost 20 percent more than in the same period of the previous year.
But the group has to realize that good series alone are no longer possible for rapid growth at home. Many viewers looked a little fed up. This can be seen in the number of viewers of blockbuster series such as "Lupine", where user interest in the new second season has decreased significantly compared to the first: 54 million users watched, 20 million fewer than in the first season.
Netflix's own production "Too hot to handle" also lost a lot in the new season, falling from 51 to 29 million viewers. Netflix was able to gain blockbuster films, "Army of the Dead" was seen 75 million times, "Fatherhood" 74 million times.
The slump in growth is mainly due to the strong competition: Disney launched its own streaming service Disney + in mid-2019, which primarily appeals to families in the USA. Apple continues to aggressively market its Apple TV offering, giving away the service to many subscribers through credits.
Amazon is also making blockbuster acquisitions for Prime Video, and is currently buying an entire studio with Warner. Disney in particular, with its focus on well-known entertainment brands such as the Marvel universe and "Star Wars", grew significantly faster than Netflix, increasing by over 70 million subscribers from the 2nd quarter of last year to currently 103.6 million . Netflix is now a long way from these growth rates.
There is potential for growth
Overall, Netflix still sees further potential for growth: In the letter to the shareholders, the group points out that, according to the screen time statistics of the media service Nielsen, currently only seven percent of screen time in the USA is used for Netflix, which the group wants to increase further. also to keep existing subscribers.
To do this, he relies on two offers: On the one hand, Netflix wants to produce more big blockbuster films in the future. That carries a high risk, but if it succeeds, for example with the Netflix hits "The Highwaymen" and "The Irishman", the public success of individual films can convince new subscribers to sign up for the series treasure of the group stick to it.
That is why the group is currently starting an initiative to produce more such blockbuster films: The experienced producers and Hollywood managers Kira Goldberg and Ori Marmur were promoted at the beginning of July and are now supposed to lead their own team that is supposed to produce blockbusters with high budgets.
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Netflix is working on several major productions, including "Red Notice" with Ryan Reynolds and "Slumberland" with Jason Momoa. According to a "Variety" report, the two top managers should explicitly spend more money, hire new producers and produce more films. Netflix plans to complete more than 70 film projects this year alone.
The Group's second foray is aimed at Amazon and the games industry: Netflix also wants to enable game downloads in the future and offer its subscribers computer games at no extra cost. Initially, the group wants to concentrate primarily on games for mobile devices, later on, game streaming for the television screen could also play a role.
The experienced top manager Mike Verdu is to lead game development in the group in the future, Netflix had just poached him from Facebook. The Netflix CFO Spencer Neumann also comes from the games industry, and the company even entered into a legal dispute with the previous employer, the game studio Activision Blizzard, about his employment.
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Netflix boss Reed Hastings had already expressed his interest in the game industry a year ago and said that he found blockbuster games such as "Fortnite" to be more relevant opponents than other streaming services in the competition for the attention and purse of customers.
But with this Hastings is entering difficult terrain – competitor Amazon, for example, has failed to establish its own range of games for several years, despite high development investments. The group recently stomped on some projects again. It remains to be seen whether Netflix succeeds better.
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Source: https://www.newsy-today.com/netflix-with-growth-problem-number-of-new-customers-is-falling/
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