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Thursday, March 30, 2023

Netflix falls sharply as inflation hits consumer wallets

And if inflation and inflation combined seem to be the main cause of declining consumer base, inflation is unlikely to last for several years and the pressures on consumer growth may persist for a long time to come. Technology industry analyst Richard Winsor said in his analysis of Netflix Investment Eligibility: Time ”

Catherine, which monitors subscribers’ trends in various industries, says inflation is on the rise. Quarterly “The cost of living has caused some GB families (especially young families) to lose their entertainment. In this blog, Dominique Sunebo, Director of Cantar Global Strategic Insights, says: Where and how their disposable income is spent. Add the following market volatility: “Consumers who plan to cancel SVoD services and the main reason they ‘want to save money’ are up 38%, up from 29 percent in Q4’21. ”

It is hard to imagine that this is not the case in many other markets as well, especially in the UK. The yet-to-be-agreed agreement BTT said in early February that it hoped to finalize negotiations on budget Q1 (which runs from April-June) and that the joint venture would work through the year.

But back to Netflix … it’s amazing to see how much erosion there is in the global population, because Netflix, as mentioned, was expecting some negative customer base from rising prices and at the same time earning revenue. Improvement (reason for the expansion of the demand for services).

And, of course, sales increased by $ 7.87 billion in the first quarter, up 9.8% year-on-year, but most importantly, despite subtracting numbers, it only increased by more than 2% over a quarter. And while he expects the number of customers to decline in the current three-month period, he predicts second-quarter revenue to exceed $ 8 billion.

In addition, Netflix has invested heavily in its program, but it is still profitable at this time.

So the current situation is not bad but it needs to be addressed.

So what can Netflix do to counter the trend and please investors?

Given the long-term prospects, Netflix is ​​becoming more and more popular for subscribers, as global broadband access is improving and more devices are being released for video streaming. That doesn’t mean automatic registration, of course. Well done so far).

But what does it do in terms of business and operational models?

In terms of business models, it seems that the advertising component can be introduced for the first time at a reduced price (or free?). “People who have watched Netflix know that I am a big fan of the complexity of advertising and the ease of subscription,” Red Hastings, the company’s chief executive, said in a revenue call on Tuesday. “But as long as I’m a fan of that, I’m a big fan of consumer choice,” he joked.

And in terms of functional models, Netflix is ​​hinting at password sharing. Netflix said in a statement: “In addition to our families who pay more than $ 222 million, we estimate that Netflix shares more than 100 million households.” Membership has not changed much over the years, ”making it difficult to grow subsidiaries in many markets.

The problem here is that Netflix has exacerbated this problem, and now “multi-family sharing income” is a big problem.

Netflix “is experimenting with different approaches to revenue sharing and introduced two new paid sharing features in March, with current members choosing to pay for additional households in three markets in Latin America,” the statement said. There is a wide range of involvement from family to senior. So while we may not be able to make all the money right now, we believe it is a great opportunity in the short to medium term.

But that will not be easy. “Password sharing is an ongoing problem for all media services. Squeezing down may help but one size may not be suitable for all solutions. There will be frustrated subscribers who have completely deleted Pescator, believing that Netflix “should try different price levels to meet different audiences.” Initially, the low-cost ad-supported service “could help convert free installers,” the analyst added.

This can lead to complications and damage to the brand.

Here are two key takeaways for digital service providers (DSPs). First of all, no matter how strong the brand or how good the service is, consumers have only 24 hours a day and a lot of disposable income – and these days, for most people, they spend less on entertainment. The availability of alternative business and customer engagement models helps DSPs anticipate and anticipate hurricanes.

Second, and perhaps even more so, when things seem to be going your way, it may be best to address them as soon as possible. It’s not like Netflix has 5 million or 10 million password-sharing households – 100 million, which is about half of the global customer base. Now, when potential users are actively looking for ways to access digital content for free (legally or illegally), it can take a lot of extra time and money to cope with the challenge.

– Ray Le Maistre, Editorial Director, Telecom TV

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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