2023-10-24 04:08:47
Aurélien Fleurot, edited by Gauthier Delomez / Photo credits: JONATHAN RAA / NURPHOTO / NURPHOTO VIA AFP
modified to
06:34, October 24, 2023
The streaming giant, Netflix, is growing with an increase in its operating margin and the gain of nearly nine million subscribers in 2023. A success which is largely explained by the profitable strategic choices of the group, between the launch of a cheaper offer and the fight once morest account sharing.
2023, year of growth for Netflix. In difficulty a few months ago, the American streaming giant saw its operating margin increase by 20% and gained nearly nine million subscribers worldwide. A reversal of trend which can be explained in particular by the success of the cheaper offer, but with .
“One new subscriber in four chooses this offer,” underlines Renaud Kayanakis, tech and media specialist at Sia Partners, speaking to Europe 1. He recalls that in addition to being low priced, “the quality of distribution is superior to standard offers.
The increase in subscription prices, not a problem for Netflix
This offer therefore constitutes a profitable strategic choice for Netflix, in an area where competition is strong with Disney, Amazon, Apple and even Paramount. The other successful turn for the platform is that of the fight once morest account sharing. A practice which still exists, but which has been greatly reduced.
Here too, there is additional revenue for Netflix, and this is good for the American streaming giant since it really needed it to sustain an economic model that is more fragile than its competitors. “The risk is the fact that it is a distributor and that originally, they do not have a catalog of offers like Paramount or Disney may have,” notes Renaud Kayanakis. “They have exclusive content but not the strength in terms of catalog size.”
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