Netflix centered on maintaining its 277 million subscribers

Olivier DOULIERY

Netflix nonetheless has tens of millions of subscribers however the streaming big is now specializing in retaining and attracting shoppers who’re drowning in an excessive amount of leisure.

The Californian group has greater than 277 million subscribers worldwide, after gaining greater than eight million new subscribers within the second quarter, a end result that once more exceeded expectations.

It additionally exceeded Wall Avenue expectations with income of $9.56 billion, and generated $2.15 billion in web revenue, in keeping with its earnings launched Thursday.

From 2025, nonetheless, the platform is not going to present the beneficial properties (or losses) of its subscriber each three months, with a purpose to give attention to measures of “engagement” of the viewers (time spend watching content material).

Communication is “the important thing to Netflix’s success.

“When individuals watch extra, they keep longer (loyalty), discuss Netflix extra usually (which drives new subscriber acquisition), and worth the t – our service.

Netflix has seen the variety of subscribers explode in current quarters, primarily because of the tightening of its coverage on sharing passwords between customers, however this mechanism that ‘play much less and fewer, notes Ross Benes, from the corporate Emarketer.

The service “reaches saturation in sure markets, so the time spent (viewing content material) is extra favorable to it,” defined the analyst.

– “Each Second” –

On this space, Netflix is ​​not solely going through its direct opponents (Disney, Apple, Amazon, Max, and so on.) but additionally the various streaming and leisure platforms, from YouTube to video video games by TikTok and channels tv.

ANDREA RENAULT

In June, YouTube was the main streaming service in the US, with nearly 10% of the audio-visual market share, with Netflix coming in second with 8.4%, in keeping with the Nielsen institute.

“The competitors for leisure is fierce,” Ted Sarandos, the group’s co-chief government officer, admitted on a convention name with analysts. “And we battle for each second that goes.” spend our content material.”

A profitable sequence like “The Bridgerton Chronicles”, which started its third season in Might, drastically contributes to the management of Netflix.

However this management “exhibits indicators of weakening,” believes Mike Proulx, vp of Forrester.

In line with a research by this firm, it’s “the one main broadcaster to see its month-to-month utilization lower amongst American on-line adults in 2024”.

“Subsequently it’s much more essential for Netflix to proceed to give attention to its promoting actions to diversify and enhance its income,” mentioned the analyst.

– Ship immediately –

Greg Peters, co-CEO, assured that the expansion of the subscription base of the ad-supported method was according to their objectives.

However most different platforms additionally provide subscriptions with promoting, producing extra competitors amongst advertisers.

To draw them, Netflix is ​​doubling down on reside broadcast occasions, that are very talked-about with manufacturers.

In sports activities, the corporate has signed a ten-year settlement with the American skilled combating league WWE, for $ 5 billion, and can broadcast reside on Saturday a boxing match between YouTuber and apprentice boxer Jake Paul and ring legend Mike Tyson.

Above all, in Might he acquired the rights to no less than 4 video games within the American skilled soccer league NFL, which can be held over the following three Christmases.

Till now Netflix had stayed away from conventional competitions, which generate increased audiences however are costly. In line with the Wall Avenue Journal, the group will spend $75 million for every of the 2 video games this 12 months.

The service can also be growing reside broadcasts in different areas corresponding to comedy. On August 3, he broadcasts a present with Joe Rogan, a well-known comic in the US, who’s commonly accused of giving conspiracy theories, particularly on his podcast.

“Promoting income continues to be not essential sufficient for the corporate to speak publicly,” mentioned Ross Benes. “However a 12 months of sports activities and different reside occasions is his greatest probability to alter that.”