According to GlobalData, the increasingly crowded market will result in slowed growth for the streamer, and suggests that it needs to re-evaluate its strategy in order to “become an entertainment all-rounder and stand out in the crowd.”
GlobalData associate analyst Francesca Gregory explained: “Netflix experienced a slow start to 2021, following a light slate of content as pandemic production problems came to the fore. Although fresh content in its third quarter boosted subscribers to 214 million, competing platforms are experiencing explosive growth. Disney+ amassed 118 million subscribers by November 2021, just two years after its launch. Bezos also boasted that 175 million Amazon Prime subscribers had streamed content last year. Although subscriber accounting across platforms varies, it is clear that 2022 will be characterised by increased competition.”
The analyst also points to examples such as Amazon’s big-budget Lord of the Rings series, along with Paramount+ which is looking to cater to an underserved Gen X audience.
Gregory concludes: “The ‘all you can eat’ business model has proven popular with streamers so far. However, this means that to grow revenues, streaming platforms will need to seek new audiences. A series of strategic partnerships between video streaming, gaming, and podcast companies will take place. The launch of Netflix Games in November 2021 and a co-streaming partnership with Twitch for select content is evidence of some of the ways this diversification will take place.”