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Heavy head wear Crown.
Once a booming upstart in the TV industry, Netflix has now become the king of streaming media, with 208 million subscribers-not including China, accounting for nearly half of the global total.
But the latest round of the media company’s quarterly results ended on Thursday night, with data from Disney, Indicating that the saboteur is now firmly acting as the defender.
The three old media groups that Netflix tried to scrap, Disney, HBO and ViacomCBS, are all growing Streaming service In the first three months of this year, Netflix aroused the concerns of investors more quickly, who worried that Netflix must continue to invest billions of dollars in new shows to attract viewers or risk losing its momentum.
“Netflix not only invented it in the game, but also personally invented it. But prosperity is not the same as bending over, so the rest of the year is crucial.” Hargreaves Lansdown (Hargreaves Lansdown) stock analyst Sophie Sophie Lund-Yates warned. “The performance of the pandemic is impressive, but anyone can make hay when the sun is shining.”
“We didn’t find any real changes”
Netflix has added less than 4 million subscribers worldwide in the first three months of this year, which is seriously lower than its own expectations. In the two largest markets, the United States and Canada, only 450,000 people registered.
Netflix co-founder Reed Hastings (Reed Hastings), after reporting these data last month, told competitors to a large extent that it avoided threats from competitors. He said: “In a highly competitive environment, we have not found any real changes.”
But Disney Plus attracted 9 million subscribers during the quarter, while ViacomCBS added 6 million, and HBO signed nearly 3 million US subscribers in its Max streaming service.
In the past year and a half, Disney, Apple, WarnerMedia, Comcast and other companies have launched new streaming media platforms. According to data company Ampere, there are now more than 100 streaming services to choose from, dizzying niche products, such as Shudder dedicated to horror films or Horse & Country used to spread horse racing.
10%
Netflix shares have fallen since the beginning of the year
Unlike cable TV, which usually locks customers in sticky pay packages, Netflix subscriptions can be cancelled with a few taps on the keyboard, which makes it easier for people to switch between services based on what they want to watch.
Netflix’s stock has fallen 10% this year, missing a broad stock market rebound.
In recent years, the company’s share price has risen sharply, when the company reached a peak of new subscribers, and investors were willing to pay a high price for future growth. Some of these reasons can be explained as a pause.
But there are also signs that Netflix, established in 1997, is transitioning to a more mature stage.
“Different stages of growth”
The company said in January that it no longer needs to raise debt to pay for its programming, which is a milestone in a decade of relying on junk debt to surpass Hollywood studios. Netflix announced a $5 billion stock repurchase program last month.
When Netflix operates like an established company, raising prices and asking customers for more funds, the century-old Walt Disney Company and its peers, like startups, prioritize development because they lose dozens of streaming media every year. One hundred million U.S. dollars.
Disney’s direct consumer business unit-including Disney Plus, Hulu and ESPN-reported a quarterly operating loss of $290 million and revenue of $4 billion. Disney expects its streaming business to lose money until fiscal year 2023.
PP Foresight analyst Paolo Pescatore said: “Compared with other streaming media, Netflix is at a different stage of growth.” “It will take many years for many other streaming services to be profitable. Everyone is betting a huge bet, and it will become A leader who has lost money for many years.”
“We spent a lot of money”
This strategy is beneficial to Disney. Disney’s stock price has risen by more than 60% in the past year because investors are focusing on the number of streaming subscribers that Disney has increased rather than the billions of dollars lost due to the pandemic. The number of subscribers for the company’s first quarter was 5 million lower than expected, which made its stock price lower in after-hours trading on Thursday.
According to Ampere, there are now more video streaming subscriptions than the United States, with 330 million subscribers and a population of 330 million. This raises the question of how many services families will continue to pay for.
Executives believe that clicks are ultimately the driving force of the subscription business. As Hollywood knows, they are difficult to predict.
Disney Chief Executive Bob Chapek (Bob Chapek) pointed out that the recent Marvel shows are a catalyst for its recent subscriber momentum. “We spent a lot of money… to create content that makes consumers repeat customers,” he said on Thursday.
Netflix executives have promised that with things like That wizard.Lund-Yates of Hargreaves Lansdown said: “Later this year, there will be a lot of enhanced content schedules.” “Otherwise the spotlight will come on. [Netflix] For many wrong reasons. “
Other reports by Alex Barker
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