Cheaper supply, combat in opposition to account sharing… Netflix’s paid decisions

2023, yr of progress for Netflix. In problem a couple of months in the past, the American streaming large noticed its working margin improve by 20% and gained almost 9 million subscribers worldwide. A reversal of development which may be defined specifically by the success of the cheaper supply, however with promoting.

“One new subscriber in 4 chooses this supply,” underlines Renaud Kayanakis, tech and media specialist at Sia Companions, talking to Europe 1. He remembers that along with being low priced, “the standard of distribution is superior to straightforward affords.

The rise in subscription costs, not an issue for Netflix

This supply subsequently constitutes a worthwhile strategic alternative for Netflix, in an space the place competitors is robust with Disney, Amazon, Apple and even Paramount. The opposite profitable flip for the platform is that of the combat in opposition to account sharing. A observe which nonetheless exists, however which has been significantly lowered.

Right here too, there’s extra income for Netflix, and that is good for the American streaming large because it actually wanted it to maintain an financial mannequin that’s extra fragile than its rivals. “The danger is the truth that it’s a distributor and that initially, they don’t have a catalog of affords like Paramount or Disney could have,” notes Renaud Kayanakis. “They’ve unique content material however not the power by way of catalog dimension.”

Even the rise within the worth of sure subscriptions doesn’t appear to disturb Netflix, which based on varied research stays the number one alternative. On the similar time, different platforms are inclined to see their prospects subscribing for a couple of months, relying on the sequence provided. .