The US and Europe are ‘Neflix’d out’ and the streamer needs to turn its attention to emerging markets such as Italy if it wants to grow its subscriber base further.
GlobalData says that the company’s continued investment in content won’t necessarily be enough to grow subscriber numbers in its traditional markets.
“The US and European markets are completely saturated, with customers having a growing number of competitors to choose from. Therefore, streaming companies’ mantra of ‘content is king’ is no longer guaranteeing ideal subscriptions growth. Netflix will need to refine its emerging economy strategy, which has been seriously lacking,” said Francesca Gregory, Associate Analyst at GlobalData.
GlobalData highlights that India holds much promise for Netflix, with subscription-video-on-demand (SVOD) penetration in the country expected to increase from 24% in 2021 to 42% in 2026*, and streaming subscriptions forecast to reach 191 million by 2026.
“India holds one of the greatest opportunities for growth. While Netflix has been slow to act here, its competitors have moved early and secured their positions – with a third of Disney+ subscribers emanating from the country, for example,” adds Gregory.
GlobalData says that a combination of high prices and a lack of local content have held Netflix back in In the Indian market. Netflix currently trails well behind competitors in the country, holding just 4% market share while Disney+ holds 68%.