Analyst Michael Nathanson believes Netflix needs to make big changes, such as commercial and sporting events (matches).


Source: SmartLife / Unsplash / Alexander Shatov

As more people return to sports, travel, various events and activities that were limited or non-existent in the last 16 months, it remains to be seen how popular streaming services will respond.

The platform is under the most pressure Netflix Despite the increasing competition in the market which has the most users.

The offer of streaming services has never been higher, which was reflected in the results Netflix In the first period of 2021 .. they added just 3.98 million new subscribers, after gaining another 15.77 million new users before the epidemic broke out a year ago. Netflix The first quarter ended with 208 million subscribers, up 14% from last year, but less than the 210 million forecast.

Netflix Still the most popular streaming service on the planet, but to stay in that position, analysts Michael Nathanson From Moffatnatson research They said they would have to apply ads if they could not increase the number of new users. The CEO of this platform, Reed Hasting Last year he said he did not want to force users to view ads: “We have a lot of simple business models that have the potential to grow much more in the consumer market than advertising advertising centered on streaming and user experience.” – He said a year ago.

Increasing financial pressure and a growing list of streaming competitors could force Netflix to create a time for change: “While Netflix’s management continues to reject the notion of advertising, we believe that such growth will be seen as a strategic mistake when future subscribers begin to decline.” – Says Nathson, And transfer Forbes.

Netflix company logo Los Angeles
Source: SmartLife / Unsplash / Cameron Venti

In addition to advertising, Nathson That considers Netflix He will have to expand his offer and at sporting events he will see the solution.

“Netflix may add sports to get premium subscriptions, which will help them improve their ARPU (average revenue per user), gain more exposure to advertising and increase interest in its services in a highly competitive market. We believe that advertising will support and live. Sports users can enter more strongly to reach the market, especially in areas where the ARPU is low. He concludes.

For now, it will Netflix Stay as it is without ads, but it should be noted that other streaming platforms like HBO Max and Paramount Plus In their offer they have the option to subscribe to these services for less money in the US, but to get ads. Earlier, information appeared that Netflix He may include video games in his offer, but they have not yet mentioned anything from the company.

All this with the addition of yes Netflix There is a problem with account sharing, we would not be surprised if ads are published on this platform very soon.

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By eseek

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