Tuesday, February 7, 2023

Netflix set for very slow revenue growth, could spend less on first-party content this year

netflix As per the forecast of the analysts, the results of the last quarter of 2022 are very close to being presented and everything indicates that After slower than expected revenue growthWhich can result in less expense on your own material.

streaming platform Had pinned his hopes on his plan with advertising, but everything indicates that it hasn’t worked as expected and neither has any advertising Increase in the number of customers.

Netflix is ​​expected to add 4.5 million subscribers In the fourth quarter of the year, the lowest additions since 2014 and a decline of nearly half from a year ago, when it added 8.3 million customers.

the reason? Echoed by analysts reuters, The ad-supported plan, which costs $6.99 (5.49 euros in the Spanish region), isn’t cheap enough to entice users to buy it.

Third Bridge analyst Jamie Lumley revealed, “Given the saturation of the market and the variety of different options available, and the fact that the price is not significantly lower than the competition, there are some challenges in achieving those customer goals. ” ,

Is Netflix Rethinking Its Production Philosophy? The cancellation of ‘1899’ indicates that he is no longer interested in quantity but efficiency

It is likely to draw attention to Netflix’s aggressive content spending, which chief financial officer Spencer Newman revealed in July would total $17bn a year for the next two years.

“When debt was cheap, you could borrow a lot of money and invest it in content,” says Shahid Khan, partner and global head of media and entertainment at Arthur D. Little.

“Given current interest rates, Netflix will have to be very selective about what they green-lighting content and how they finance it,” he continues.

for comparison, Disney expects content spending to drop to less than $30 billion by 2023While Paramount projects are spending less than 10,000 million.

Nation World News Desk
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