Media companies are Battling to Stay Competitive: Reports
The battles that have taken place in the streaming media industry over the past three years have come to define the global media and entertainment industry. To stay competitive, every media organization has developed its own streaming service, said reports.
The streaming wars did not come to an end in 2018, but a meteor of sorts appeared to be heading toward the entertainment industry in the shape of slowing growth.
Netflix experienced a drop in subscription numbers for the very first time in its history. Its stock dropped by more than 60%. Because Comcast’s NBCUniversal division, Paramount Global, Warner Bros., and Disney, Discovery had all reoriented their businesses to focus on streaming media, the share prices of all of these companies experienced a significant decline.
If sources are to be believed, there is still fierce competition among media organizations for popular shows, advertising dollars, and, ultimately, viewers’ attention.
According to Netflix’s most recent quarterly earnings report, this appears to be the case. The number of streaming members that Netflix added in the fourth quarter was 7.7 million, which was far higher than the forecasts of industry analysts, which were closer to 5 million. After hours, Netflix’s stock price increased by more than 6%.
As per the reports, media firms are facing a single adversary, and that adversary is tired among streaming subscriber bases.
Netflix has stated that it anticipates a slower rate of subscriber growth in the first quarter compared to the fourth quarter due to general seasonality reasons.
However, the company anticipates growth in the second quarter due to an increase in the number of customers signing up for the service rather than canceling it as a result of Netflix’s crackdown on customers sharing passwords.