Everyone loves watching Netflix, a global streaming service. Costs rose almost a fifth in the last quarter compared to last year and total revenue doubled. However darkness is based on corporate finance. Opponents of Disney and Amazon are building a television and video theater. Netflix should consider purchasing its own studio.
Subscription growth this year will not match the 2020 increase. Netflix has added 1.5m new subscribers in the second quarter. Although it was above its lowest forecast, it has failed to attract anything like the 10m quarterback last year. Don’t worry about losing out on almost half a million registrations in North America and Canada – the first drop in two years.
Netflix wants more customers in the richest countries in the world that can raise prices and raise profits. Over the past two years, the average membership rate in the US and Canada has grown by $ 2 to $ 14.54. In Latin America it is half.
The drop in enrollment is not just about complacency. Nielsen’s figures released in June show promotional activities now take more time to watch than TV. Netflix has a content problem. It doesn’t have a new blockbuster, the original soundtrack. The Analytics test for “Parrot Analytics” which requires “interest rate”, which includes Google search and social media, reveals that fighters like Disney were attracted to Netflix.
Netflix spent $ 8bn on the first items in the year. New songs may appear in the second half. It has a Disney-like plan to make smart money through an ecommerce store and video games. But competition is fierce. Amazon, Apple, Google and Facebook are pouring money into the game as well.
Why not buy a studio instead? Disney bought 20th Century Fox and Amazon bought MGM. Lionsgate stand-alone studio with $ 3.5bn equity value, has franchises such as In the evening along with a small Starz promotional product. Netflix should consider buying more through the Hollywood studio before all are taken.
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