Brake on the growth of Netflix

While the platforms of rival video-on-demand prepare for their arrival on the american market, the growth of Netflix suffers to a halt unexpectedly in the secon

While the platforms of rival video-on-demand prepare for their arrival on the american market, the growth of Netflix suffers to a halt unexpectedly in the second quarter. The firm of Los Gatos (California) has lost more than 130.000 subscribers in the United States, and has won 2.7 million on its international markets. However, analysts on the whole optimistic about the ability of Netflix to maintain growth at a torrid, had been pencilling in a gain of close to 5 million subscribers internationally, and 352.000 more on the american market.

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The surprises had plunged the company's outstanding fetish of the Nasdaq more than 12% on the otc market, after the close of Wall Street. It is true that since the beginning of the year, the shares of Netflix jumped 35%, pushing its capitalization to more than $ 150 billion.

We understand the concerns sudden to those who were euphoric again yesterday, because the last net loss of subscribers in the United States the pioneer of the "stream" goes back to 2011. Netflix had tried to change its pricing. Before the outcry caused by the experience, the new system was quickly abandoned.

today, the source of the problem is different, if you believe Reed Hastings, the founder and boss of the company that is revolutionizing tv. He first given the disappointing performance of the second quarter on a simple catch-up, after a first quarter that had exceeded all expectations. He admits, however, that the new series introduced from march to June are likely to have generated less enthusiasm than expected. Paradoxically, it is the reason why he is optimistic for the third quarter. New seasons of the cult series are expected. In particular, it is the last season of the series Orange Is the New Black as well as a new season of The Crown , the two productions are very popular for several years. Reed Hasting concedes, however, that the disappointing growth of its audience abroad is more pronounced in countries where tariffs have been increased.

The quarterly results, Netflix announced last night are in the semi-shade. The turnover of the company climbs certainly 26%, but its profits drop from $ 384 million in the second quarter 2018 to 271 million during the equivalent period this year. The management displays for all his optimism by focusing on 7 million new subscribers in the third quarter, including about 800,000 in the United States.

The competitive landscape of Netflix should not change too much in the third quarter. Amazon Prime Video and Hulu are still the major platforms competing for the moment. But Disney is preparing for the launch in November of a service at a very competitive price of only 6,99 dollars per month. The response of WarnerMedia, now property of the telecommunications operator AT&T, must come up next spring with an offering called HBO Max, the price of which could be 16 to $ 17 per month, if we are to believe the rumors. These monthly subscriptions are to be compared to 12,99 dollars from Netflix in the United States.

One of the consequences of the emergence of these new offerings rival: the disappearance of some of the series now present on Netflix, and their return to their home production of the original. For WarnerMedia, it is Friends . The streaming service of NBCUniversal, which is not expected before 2021, should recover the exclusivity of The Office , another cult series for the time being are still available on Netflix. "You no longer have to pay the rights for these series will release resources for original productions", maintains the direction of Netflix.

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Updated Date: 07 June 2022, 19:55

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