2023-07-20 16:37:44
Frankfurt (ots) – 5.9 million more accounts thanks to action against account sharing and a new -financed tariff: Netflix’s quarterly figures are like a declaration of war. Simon-Kucher streaming expert Lisa Jäger explains why more subscriptions for Netflix could mean a negative trend for the competition.
The streaming giant proves that Netflix dominates the market with the latest quarterly figures. Although the company, at $8.19 billion, is slightly below the $8.3 billion sales expected by analysts, the strategy is working: the -financed tariff attracts price-sensitive customers. At the same time, the strict approach against sharing accounts seems to lead to more subscriptions. The conclusion? Netflix trusted in its market dominance, embarked on an innovative strategy and won.
But Netflix’s success is making the competition’s path harder. Because: Netflix eats the budget for the other streaming providers. At least in large part. Why? Our current Simon Kucher streaming study shows: 41 percent of consumers first want to cancel an existing subscription in favor of a new subscription. If consumers actually implement this so consistently, this means that a decision for Netflix will then in almost every second case be a decision against the competition. A development that is being exacerbated by the recession.
Streaming providers now have to react immediately: with concepts for customer loyalty and -financed alternatives. Because is no longer a KO criterion. On the contrary: our streaming study shows that users are increasingly open to streaming subscriptions with .
Lisa Jaeger is Partner and Global Head of Technology, Media & Telco in the global strategy consultancy Simon-Kucher & Partners. As an expert in portfolio optimization, pricing and marketing for all types of media and internet companies, her focus is on physical offerings and revenue streams as well as the digital transformation of business models. Her clients include TV and radio stations, publishers, online platforms and marketers.
*About the study: The representative Simon-Kucher Streaming Study 2023 was carried out in May 2023 by Simon-Kucher in cooperation with the independent market research institute Cint. 11,910 consumers in 12 countries worldwide (Germany: n=1,001) were asked about streaming behavior, content preferences and willingness to pay, among other things. The press release refers to the results of the survey in Germany.
Further or in-depth study results (only for press/media/partner companies) on request. The press release for part 1 of the study is available online. Part 2 of 3 of the Simon-Kucher Streaming Study is expected to be published in late summer.
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