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Netflix's rapid growth in the U.S. market slows down, aiming to seize the opportunity in the international market

via:博客园     time:2020/2/22 9:01:09     readed:46

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Growth trend of Netflix subscribers in the U.S. market

Tencent technology news, February 21, according to foreign media reports, Netflix, the streaming media giant, is currently the most popular video service in the United States, but it may not become more popular in the U.S. market in the next few years. Analysts expect Netflix's growth in the U.S. to slow sharply and seek to go overseas, hoping to beat competitors including Disney plus by quickly acquiring subscribers in larger markets.

Several top analysts expect Netflix to continue to grow at a robust pace thanks to the strategy, raising their expectations for the company. Netflix's share price surged to a 52-week high earlier this week, further proof of its bright future. Moffett Nathanson senior analyst Michael

Nathanson added that over the next five years, he expects Netflix's U.S. subscribers to slow to about 1 million a year. This is a far cry from Netflix's average annual increase of 5 million subscribers in the United States between 2012 and 2018.

Netflix's growth in the United States has begun to plummet. Netflix's net increase fell 55 percent between 2018 and 2019, bringing in just 2.6 million subscribers. Still, that's a stunning number, accounting for more than 20% of HBO's current total U.S. subscriber base and nearly 10% of Hulu's total subscriber base. That's not exactly the number Netflix likes to see, however. Netflix's slowing growth in the U.S. has its reasons that people who want to subscribe to Netflix may already have a Netflix account. There are fewer new users of the service, and people now have more options.

While the competition in the United States is heating up and the enterprise groups are competing for the audience's attention, Netflix focuses on two major markets: the international non English market with high broadband penetration rate and the countries with mobile focus. Broadband penetration is growing, and Netflix has invested heavily in areas such as Germany and Japan. In these regions, Netflix sees the potential to add more subscribers.

Compared with competitors such as Disney plus, entering these different markets may give Netflix a huge advantage, provided that Netflix can sort out these markets. This means that it needs to try pricing options, increase global licensing (such as obtaining exclusive rights to Studio Ghibli's films outside the United States), and take risks in shooting original international films and TV programs that might not have been available before.

You can already see this happening. When Netflix's earliest competitive reality show, Ultimate Beastmaster, was launched in 2017, Netflix released localised versions of the six different countries it wanted to develop: the United States, Brazil, South Korea, Mexico, Germany and Japan. In the past few years, Netflix has begun opening offices in major markets such as Germany, Italy, the UK and Brazil. Overseas giants like "Dark "(Germany) and" Elite "(Spain) are popular at home and abroad, according to Netflix.

In 2017, it was reported that Netflix's vice president for international original business, Eric

Disney, which just launched Disney plus in November 2019 and will launch in parts of Europe next month, will have to spend time producing more shows in specific regions to meet quota requirements. Once Hulu expands internationally in 2021, the same is true.

Other major streaming companies, such as NBC Universal's Comcast and Warner Media's HBO Max, don't seem to have that ambitious international expansion plan, according to Nathanson. Bob, chief executive of Viacom CBS

Analyst Matthew

Netflix faces fierce competition in many areas. In India, for example, Netflix's biggest competitor in the country is hotstar, the most popular streaming service in India, which Disney acquired as part of its global expansion; in addition, it includes the Ott platform, jiotv, owned by jio, an Indian mobile operator, which provides live sports and other programs. Amazon Prime, Amazon's streaming service, is also expanding.

A large proportion of users of jitv and hotstar are focused on mobile services, which is where Netflix is trying to invest more in this area. This helps explain why Netflix will invest $400 million in original Indian products between 2019 and 2020. Overall, Netflix is not worried about slowing customer growth at home, it's enough to attract them to stay. Now, Netflix is focused on attracting new international subscribers. (reviewed by Tencent technology / Jinlu)

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