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Technology Stocks : Netflix (NFLX) and the Streaming Wars -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (2122)	6/21/2022 4:46:34 AM
From: Glenn Petersen	Read Replies (1) \| Respond to of 2280

U.S. Subscription VOD Revenue Growth Slowing to 13% in 2022, Hitting $25 Billion: PwC Report By Todd Spangler Variety June 20, 2022 Subscription streaming video is cooling down from torrid growth rates seen in 2020 and ’21 — fueled by pandemic lockdowns — but is still experiencing healthy expansion in the U.S., one of the segment’s most mature markets. In 2022, SVOD services in the United States will generate revenue of $25.32 billion, up 13% from last year, according to PwC’s Global Entertainment & Media Outlook 2022–2026 report, released Monday. The segment is projected to reach $33.59 billion by 2026, representing an 8.5% compound annual growth rate from 2021-26. The 13% uptick projected for this year is down from 19.5% annual growth in 2021 and a whopping 27% increase in 2020 for U.S. SVOD. The PwC study noted that, in the U.S. and many other parts of the world, the COVID pandemic propelled over-the-top video uptake years ahead of where it would otherwise have been — a “pull-forward” effect seen by many services. Market leader Netflix has seen subscriber numbers turn negative in the first half of 2022, losing 200,000 in Q1 and expecting a net loss of 2 million in Q2, after enjoying huge gains the two prior years. Netflix also is facing aggressive competitors like Disney+ and HBO Max, amid a broader economic backdrop of rising inflation. “Netflix is no longer the single big-name player, but is instead joined by a number of high-profile services, each with exclusive and desirable content,” the PwC report says. The U.S. remains the largest OTT video market, generating $29 billion across SVOD and transactional VOD (electronic sell-through and rentals) segments in 2021. China was No. 2, with OTT video revenue of $11.4 billion last year. While TVOD performed well in 2020 and ’21, SVOD will continue to account for the majority of revenue growth in the OTT segment. In the U.S., TVOD will experience a year of negative growth in 2022 — down 8% this year, to $6.13 billion — mainly driven by a reversal of theatrical windowing changes in the U.S., per PwC’s report. For total OTT video revenue, Latin America will double in size over the forecast period, from $2.5 billion in 2021 to $4.6 billion in 2026, despite being the smallest global region. Asia Pacific will be the second-fastest-growing market from 2021-26, followed by EMEA and North America. US Subscription VOD Revenue to Grow 13% in 2022 to $25.3 Billion: PwC - Variety

To: Glenn Petersen who wrote (2122)	6/24/2022 7:53:34 PM
From: Zen Dollar Round	1 Recommendation Recommended By Glenn Petersen Read Replies (1) \| Respond to of 2280

Frankly I'm surprised at how badly Netflix seems to have been caught flat-footed by the loss of subscribers in the post-lockdown pandemic world and their stiff competition in the streaming space. At best Netflix executives were complacent and at worst arrogant about their leading market position. I'd assumed they had been testing an ad-supported subscription tier and a crackdown on account sharing for years, with plans to roll them out relatively quickly when needed. Apparently not. They've only dipped a testing toe into the account sharing issue in a few countries and are still a year away from bringing an ad tier to their subscription lineup. Instead they made forays into the very crowded gaming market and selling Netflix branded merchandise, like plush toys. Huh? Reminds me of Apple's arrogance in the 80's with the Mac and its 50% margins that kept them from licensing the OS to the many companies that would have paid for the privilege at that time.