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New US subscribers are drying up on the TV advertising competition

Squid game has released Netflix in its entertainment.

After a downturn in which the company said it was slow to bring an epidemic, it recovered to hit. Nearly 140m subscribers watched a few minutes of Korean Dystopian games. Walmart began selling Squid game T-shirts. Netflix groups have gone up a notch.

However in the US and Canada, all success is limited to 70,000 new customers. Of the 4.4m people who signed for Netflix in the third quarter, less than 2 percent came from the largest market.

Advertising, or watching online radio, has also changed the media industry and the US has led the rise of Netflix over the past decade. But in recent months, game signings have expired.

As the US market grows, it has become more and more difficult to attract even a few new customers. With over 100 jobs to choose from, a lot of money is needed so you don’t lose out on existing subscribers.

“It was easy to add subscribers in the early days of the stream, when they are new and you have a lot of fans,” said Rich Greenfield, a Lightshed consultant. “But when it starts to mature, how do you do this business?”

This was reflected in the financial results of the media companies in the third financial sector, which raised research questions as to whether advertising is a good business.

In the digital age, subscription additives have become a major driver in calculating the entertainment industry market. The groups are spending billions of dollars to provide live TV shows and movies to meet audiences as well as Wall Street.

Netflix plans to spend $ 17bn on content this year. In its third phase alone, Netflix released 824 episodes of the program, while HBO Max advertising services released more than 200 and Disney Plus about 150, according to MoffettNathanson, a research company.

“Which is very good if Squid game or The Queen’s Gambit . . . then the result of Netflix’s ambition and the potential for destructive, childish, destructive innovation, “says Michael Nathanson, a media expert.” [return on investment]. ”

Registration for all US videos reached 241m in March, according to Kantar estimates. Greenfield believes there are at least “US” 25m subscribers as many can be found. But in order to catch them, TV stations have to go “all in” while delivering their most popular programming games, not traditional TV.

“This is now a business idea for the media. Do they want to destroy their lucrative cinema, cable and TV broadcasting industry to win the game?” Greenfield said. “The Bachelor is on ABC [a Disney-owned TV channel]. Why? The Bachelornot only on Disney Plus?

Netflix last month adauza FT is about to bring the “stability” of the program until the end of 2022, delays in production due to the epidemic left the company lighter than expected earlier this year.

“We’re in an area we didn’t know,” Reed Hastings, chief executive officer, told fundraisers last month. “We have more to come [in the fourth quarter], if we have never had it. ”

But in the US, it is not known how to move the needle. So far this year, Netflix has only added 88,000 subscribers to the US and Canada, compared to 6m in 2020 and 3m in 2019.

With 74m subscribers in the US and Canada, Netflix can be content with just keeping the basics. But new competitors need to add more subscribers to make their money heavier.

Disney only added 2m subscribers to its third-largest global advertising campaign, said Wednesday, significant reductions from 12m, 9m and 21m recorded in the last three episodes. The shares were down more than 4 percent on the results.

WarnerMedia’s HBO Max also reported a similar quarter decline, signing 570,000 Americans, down from 2.4m and 2.8m in the last two quarters. The company told FT that the decline was “due to time constraints”, but growth should rise in the fourth quarter and return to Follow-up, Reduce Your Speed, and Sex with the City , and movies such as Dunereleased at HBO Max.

In the same quarter, Comcast no longer offered subscription updates to Peacock, a promotional service owned by NBCUniversal.

“North America is still very flooded, especially with new floods,” said Paolo Pescatore, an expert at PP Foresight. “There are a lot of jobs that are running low on dollars.”

This is important because US subscribers pay more than their Asian or Latin American counterparts. About half of the 4.4m subscribers added to Netflix in the third quarter came from Asia, where the average price paid is $ 9.60 per month, compared to $ 14.68 in the US.

Disney differences are huge, as the company has lost millions of subscribers from its Hotstar project in India. Approximately Disney Plus subscribers only pay $ 4.12 per month.

ViacomCBS last week warned that its advertising revenue will rise by $ 350m this quarter, which MoffettNathanson estimates will reduce the company’s profits by 40 percent from a year ago.

“We think we’re at risk of business disruption,” Nathanson said. “This is not a business for the weak, temporary or anxious people who are not like free money or all debt.”

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