After 10 years of growth, Netflix is ​​facing a severe crisis

Netflix has about 222 million subscribers around the world.

The latest data released by the global broadcasting giant, Netflix, has raised investors’ concerns about the fading of the network’s growth spurt during the outbreak of the Corona epidemic two years ago. The number of new subscribers to Netflix is ​​expected to decline in the first quarter of 2022 for the first time in more than 10 years, in light of increased competition from newer networks such as Disney+ and HBO Max. Amazon, and other networks.

Netflix expects to add only 2.5 million new subscribers globally in the first three months of this year, down significantly from 4 million new subscribers in the first quarter of last year, while analysts expect Netflix to have only half that number in the first quarter.

Netflix shares have fallen by nearly 20% over the past days, which has taken nearly $45 billion from the company’s market value, as investors feared the unexpected slowdown in growth for the first time since 2010, over the seven years. In the past, the network managed to attract at least 4 million new subscriptions in the first quarter of each year.

The network attracted 8.3 million new subscribers in the fourth quarter of last year, thanks to the successes of “Don’t Look Up” starring Leonardo DiCaprio, Jennifer Lawrence and Meryl Streep, and released new works in English and Spanish. Danish and Korean, including the Korean series “Squid Game”, which largely corresponds to analysts’ expectations, in contrast to the promises issued by the company after its success in penetrating the Korean market.

Netflix attracted 8.3 million new subscribers in the last quarter of last year thanks to business successes such as “Don’t Look Up” (communication sites)

Overall, Netflix added 18.2 million new subscribers last year, half the number it gained in 2020 when the pandemic and global lockdown fueled a broadcast boom, as audiences sought to relieve boredom during the shutdown. However, the transformation that resulted in a decline in the number of subscribers was mainly related to the increase in the number of competitors over the past two years with the entry of new players into the market.

Seeking to reassure investors, a Netflix official told The Guardian: “While this additional competition may affect our marginal growth, we continue to grow in every country and region where new streaming alternatives have been launched.”

While the Netflix network has about 222 million subscribers around the world, large conglomerates such as Disney continued to expand at a more robust pace, as Disney ended the year 2021 with a total of 179 million subscribers around the world across its three platforms, “Hulu”, Disney + and “ESPN”. (ESPN), and plans to double the number of countries in which Disney+ is available by 2023. HBO Max is also experiencing similar growth, as the company announced that last December was the most-watched month ever since its launch. Service in May 2020.

The crisis that Netflix is ​​facing these days applies to a number of companies that have thrived under the conditions of the pandemic, and are now being dumped by investors as the stay-at-home boom the world has witnessed in the past two years has faded. Among these companies is Peloton, which makes exercise bikes and treadmills, which was one of the big winners from the pandemic and is now suffering a 25% drop in market value after reports of a drop in demand.

Despite the storm the network is going through, Netflix announced a number of big releases, including “Ozark”, “Bridgerton” and “Stranger Things” series, later in the quarter. The first is where you expect to return to stronger growth.

As part of its strategy to contain the crisis, Netflix announced last week that it plans to raise subscription prices in the United States and Canada, while the platform lowered its prices in India to try to attract more subscribers after 6 difficult years in the huge Indian entertainment market. Netflix is ​​also experimenting with a new source of income, which is electronic games, as the company recently acquired the game studio “Night School”, and developed its own games, such as the game adapted from its hit series “The Stranger Things”.

Netflix says it will expand its lineup of games in 2022, and may include franchises that did not originate on the network itself and are not adapted from its original work.

Netflix has announced the acquisition of its first video game studio.Netflix has developed another new way to grow its subscriber base, which is content marketing (Al Jazeera)

In the same vein, Netflix has developed another new way to grow its subscriber base lies in content marketing, as the company launched a website called “Tudum” last month, where it hired journalists and entertainment editors from platforms such as “Allure” and “Vanity Fair” (Vanity Fair) and Bitch Media to share exclusive content about Netflix originals.

Over the last ten years, Netflix has presented itself to investors as a stock of growth similar to huge companies like Google and Facebook, as the network has attracted tens of millions of customers each year with 25 million new subscribers annually for the last five years except in 2021, with the transition Viewers from pay-TV to online video platforms.

Netflix has lived up to that promise for a decade, growing year after year, sending their name up nearly 6000% over the last ten years.

But it seems that the boom period is turning its face on the arrival of Netflix to the peak, and the entry of new players to the market, which ignites competition and predicts the arrival of Netflix to its peak, which was reflected in its recent crushing crisis.

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