Plus Pages

Wednesday, July 21, 2021

Report: Cracks Showing In Netflix's Dominance


Netflix is still king of streaming video, but audiences are slowly shifting toward new rivals, namely the Walt Disney Company’s Disney+, according to The NY Times citing research from Parrot Analytics.

Netflix’s share of worldwide demand interest — a measure, created by Parrot, of the popularity of shows and a key barometer of how many new subscribers a streaming service is likely to attract — fell below 50 percent for the first time in the second quarter of the year

The company’s “lack of new hit original programming and the increased competition from other streamers is going to ultimately have a negative impact on subscriber growth and retention,” Parrot said in a news release before Netflix announced its quarterly earnings on Tuesday.

Netflix said it had attracted 1.5 million new subscribers in the second quarter of the year, beating the low bar it had set when it told Wall Street that it anticipated adding just one million.

The company said it expected to add about 3.5 million new subscribers in the third quarter, lower than the approximately 5.5 million that investors were expecting. Netflix shares fell as much as 4 percent in after-hours trading on Tuesday before bouncing back a little.

The company now has 209 million subscribers, but it lost 430,000 in the United States and Canada, its most lucrative region, over the period. It now has 73.9 million subscribers in that market, with about 66 million in the United States.

Netflix has downplayed competition concerns even as newer entrants have chipped away at its long-held grip. Disney+ more than doubled its share of demand interest in the second quarter compared with a year earlier, and Amazon Prime Video, AppleTV+ and HBO Max are also gaining, according to Parrot.

No comments:

Post a Comment