2024-07-18 20:52:44
The stream leader also exceeded Wall Street expectations with $9.56 billion in revenue, which posted $2.15 billion in net profits.
Netflix received more than eight million new subscribers in the second quarter, a better result than the approximately five million expected by the market, after two quarters of growth.
Read againThe end of account sharing, advertising, direct… How Netflix succeeded “kill the father”
The streaming pioneer also exceeded Wall Street expectations with $9.56 billion in revenue, which generated $2.15 billion in net profits, according to its earnings release released Wednesday. The Californian group has, however, warned that these subscriber gains will be weak in the spring, after starting 2024 on a high note with 13 million additional subscribers received during the holiday season and more than 9 million during the first quarter.
Competition with Twitch, YouTube and TikTok
From 2025, however, Netflix will not show this figure every three months, to focus on measurements “interaction” of the audience (time spent watching content), which shows the platform’s ability to build loyalty and appeal, according to the company’s management. In this area, Netflix does not focus on its direct competitors (Disney, Apple, Amazon, Max, etc.) but many streaming and entertainment platforms, from YouTube to video games through TikTok and television channels.
In June, for example, YouTube was the leading streaming service in the United States, with almost 10% market share in the television sector, according to the Nielsen Institute. Netflix is in second place with 7.6%, mainly thanks to the start of the third season of Bridgerton broadcast. And YouTube has nearly a quarter of the total audience among streaming platforms alone. “Netflix’s market dominance shows signs of weakening”Mike Proulx, Vice President of Forrester.
Take it straight
According to a study by this company, it is “The only major broadcaster to see monthly usage decline among US online adults in 2024”. “Therefore it is of utmost importance for Netflix to continue to focus on its advertising activities in order to differentiate and increase its revenues”, added the analyst. A strict policy on sharing accounts between users and launching a cheaper subscription with advertising has been successful for the veteran of the sector.
But most other services now also offer a formula with advertising, creating increased competition between advertisers. To convince them, Netflix has doubled down on live broadcast events, which are very popular with brands. The platform has signed a ten-year broadcast contract with the American professional wrestling league WWE, for $5 billion, and will broadcast live on Saturday a football match between YouTuber and professional boxer Jake Paul and boxing legend Mike Tyson.
Above all, in June the team received the rights to at least four matches in the American football NFL, which will take place in three days of next Christmas. Netflix has so far stayed away from the traditional high-priced competition. According to can Wall Street Journal, Each of the two games of this year will be a $ 75 million company. But most of the best audience of 2023 in America comes from NFL games.
The service is also expanding into live broadcasts in other areas, such as comedy. On August 3, he will broadcast a live show by Joe Rogan, a famous comedian in the United States, who is often accused of spreading conspiracy theories, especially on his podcast on Spotify.
#Netflix #gained #million #subscribers #quarter #expected