Since the start of the pandemic, a consistent source for jokes has been the explosion of streaming services.
Media players are chasing Netflix (and many have an affinity for the “+” sign): HBO Max, Disney+, Paramount+, Peacock, Hulu, CNN+.
Is the streaming market finally saturated?
Netflix has 222m global subscribers but its growth is slowing. According to CNBC, the company projects 2.5m new net subscribers in Q1 2022 (vs. 8.3m in the previous quarter).
Investors have punished Netflix on these fears; its stock is down 37% in 2022.
If Netflix is a bellwether for the industry, streamers need to think about…
… how to reboot growth
Here are some options, per CNBC:
- Bundling: Streaming services can combine their offerings so consumers don’t get subscription fatigue.
- Add non-media perks: If people are weary of too much content, streaming services can bundle subscriptions with real-world experiences. Disney could add theme park admissions to its subscription, or Netflix could partner with DoorDash for food delivery (AKA “Netflix and eat burritos”).
- Gaming: To keep users hooked to its digital subscription service, Netflix is launching video games (gaming is a $180B industry but also very competitive).
In a huge vote of confidence, hedge fund billionaire Bill Ackman invested $1B+ into Netflix following the sell-off. That’s one big plus sign.
