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Competition pressures pushing on Netflix

January 17, 2022 10.59 Europe/London By Julian Clover

Subscriber growth is beginning to slow for Netflix as more competitors arrive on the market.

GlobalData says the streamer remains the undisputed platform leader, but competition is forcing platforms to provide more evocative content. They need to find an effective niche or build partnerships with other entertainment providers to become an entertainment all-rounder and stand out in the crowd.

Francesca Gregory, Associate Analyst at GlobalData, says: “We have already started to see Netflix branching out to different areas, with the launch of Netflix Games in November 2021 and a co-streaming partnership with Twitch. Reaching different audiences will continue to be a key strategy. I wouldn’t be surprised if the company looked to experiment with more gaming streaming platforms in the future.

“Subscribers can look forward to having a more rounded service and seeing large franchises converted into shows. This may, at the same time, leave subscribers torn between different platforms.”

After a slow start to 2021, as the global pandemic hampered new production, fresh content in the third quarter boosted subscribers to 214 million. At the same time, Disney+ had reached 118 million subscribers by November 2021, just two years after launch. Meanwhile, Jeff Bezos boasted that 175 million Amazon Prime subscribers had streamed content last year.

“As the number of streaming platforms increases, and the market approaches peak fragmentation, SVOD platforms will use content portfolios to differentiate themselves,” Gregory continues. “The trend of huge content spending will continue, with franchises that are likely to attract a loyal fanbase standing to benefit in the next year. This trend is already in motion with Amazon committing $1 billion on its Lord of the Rings series before a single episode has hit viewers’ screens.”

Further information can be found in GlobalData’s report: “Tech, Media, & Telecom (TMT) Predictions 2022 – Thematic Research.

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Filed Under: Newsline, Research, Streaming Tagged With: Netflix Edited: 17 January 2022 10:59

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About Julian Clover

Julian Clover is a Media and Technology journalist based in Cambridge, UK. He works in online and printed media. Julian is also a voice on local radio. You can talk to Julian on X @julianclover, or by email at jclover@broadbandtvnews.com.

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