Netflix Earnings Q2 2021 – The New York Times

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Cracks are showing in Netflix’s worldwide dominance.

Netflix is ​​still the king of streaming video, but viewers are slowly shifting towards new rivals, namely the Walt Disney Company’s Disney+. Parrot Analytics.

Netflix’s share of worldwide demand interest – a measure The popularity of its Parrot-created shows, and an important barometer of how many new subscribers a streaming service can attract – dropped below 50 percent for the first time in the second quarter of the year.

The company’s “lack of new hit original programming and increased competition from other broadcasters will ultimately have a negative impact on subscriber growth and retention,” Parrot said in a news release.

Netflix relies on creating as many different series and movies for as many different audiences as possible, and the pandemic has upset that formula, forcing productions to be shut down around the world.

The company will announce its second-quarter financial results on Tuesday afternoon and has already told investors not to expect too much. When he told Wall Street that he did, it set a surprisingly low bar for the quarter. expected adding one million new subscribers, a meager increase to its current total of 207 million customers. (It’s worth noting that low expectations are easier to handle, and beating expectations by a hair’s breadth can boost a company’s stock.)

Disney+ more than doubled its share of demand interest in the second quarter from a year ago, and Amazon Prime Video, AppleTV+ and HBO Max are also gaining, according to Parrot.

Even as the newcomers break Netflix’s long-standing hold, Netflix’s vice president, Reed Hastings, dismissed the competition as pretenders to the Netflix throne. In April, when asked by investors why the company had missed its expectations of adding new customers in the first quarter, Hastings replied, “Of course we wonder, ‘Well, wait, are we sure it isn’t? competition?”

“We really looked at all the data, we looked at the different regions where new competitors were launched, not released,” he continued. “And we can’t see any difference in our relative growth in these regions, that gives us confidence.”

“We’ve been competing with Amazon Prime for 13 years and Hulu for 14 years,” he added. “Linear TV has also always been very competitive. In other words, there is no real change that we can detect in the competitive environment. It has always been high and remains high.”

In an other saying: If Disney+ is hurting us, we haven’t seen it.

The claim that Netflix has long competed with regular television and other broadcasters misses the fact that new competitors such as Disney+ and AppleTV+ are much cheaper than Netflix (and subscription television). And while these services produce far fewer originals than Netflix, they seem to get more for their money.

In the second quarter, Disney+ saw a huge boost in demand for “The Falcon and the Winter Soldier,” a series based on the Marvel Cinematic Universe that has truly dominated the box office in recent years. According to Parrot, another Marvel spin-off, “Loki,” also helped.

Amazon Prime Video gained momentum during this period with the launch of “Invincible,” an animated superhero series for adults. And AppleTV+ has attracted new customers with its original trio: “Mosquito Coast,” a drama based on the 1981 novel; “For All Mankind,” a science fiction series, and “Mythic Quest,” a comedy series set at a game developer studio.

Speaking of Netflix, he said he plans to jump into video games this month. He hired Mike Verdu, formerly a game manager at Electronic Arts and Facebook, to oversee the development of new games. This is a potentially significant move for the company, which has not strayed far from the series and movie formula.

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