After a record year in 2020, Netflix’s growth seems to be slowing a bit. This is definitely evident from the results for the first quarter that the streaming service has just presented. In the first three months of the year, the platform had 3.98 million additional subscribers, less than the target of 6.29 million. In the same period last year, the company had gained 15.8 million additional users, a number that was greatly increased by the emergence of covid-19.
The competition in the streaming market is getting tougher
Netflix doesn’t say otherwise, but identifies another major reason for this result. Indeed, the pandemic would have slowed down the shooting of certain productions and the platform therefore has fewer programs to offer to the public, which would be felt with subscriptions. Still, the company remains hopeful for the future, adding:
We continue to look forward to a strong second half with the return of the new seasons of some of our biggest hits and an exciting film franchise. In the short term, there is some uncertainty about Covid-19; In the long run, the rise of streaming to replace linear television in the world is the clear trend in entertainment.
The other threat to Netflix is the emergence of new, very serious competitors. We think of HBO Max, Apple TV +, and Disney +. In just a year and a half, the entertainment giant already has more than 100 million subscribers worldwide, almost half of Netflix, which has 208 million customers to date.
This streaming war is very tangible in the United States, where supply is the most bloated. A recent study also made it possible to see a slight decrease in Netflix’s market share to 20% from 29% last year, i.e. H. A decrease of 31%. With 67 million subscribers, the service remains dominant but has to take its competitors into account. HBO Max and Disney + account for 12% and 11% of the US market, respectively, while Amazon Prime Video accounts for 16% of the industry.