Even Netflix can't keep users.
How to break the future of China's streaming media (Youai Tengmang), which is working hard to fly Netflix?
In the early morning of April 20, Netflix (NFLX.O) released its first quarter 2022 financial report.
According to the financial report, Netflix's global new paid user data decreased by 200,000 households compared with the same period last year, which is also the first time that Netflix's net user growth in the past 10 years has been negative.
At the same time, Netflix also gave its expectations for the second quarter of 2022, and the net increase in paid users will reach -2 million.
In response to the first decline in the number of paid subscribers, Netflix explained that the slowdown in the growth of broadband and smart TVs, the intensification of competition from competitors, the continued disruption of the new crown pneumonia epidemic, the impact of the Russian-Ukrainian conflict, and the increase in inflation have led to a decline in the number of users.
Spencer Newman, CFO of Netflix, said that a very direct influencing factor in the decline in the number of users is the Russian-Ukrainian conflict, which has caused a certain number of users to lose.
What are the reasons for the loss of Netflix users?
Has streaming growth hit the ceiling?
In this regard, Qin Xiao, a reporter from China Business Daily, had an exchange with Shule, and poor Dao thought:
It is impossible to really make a profit by selling videos, and it is impossible for a lifetime.
Netflix is very clear, the entrants understand, and they know where the breakthrough point is, but now they are still in the process of burning money incubating.
Previously, Apple announced its entry into the streaming media field, Amazon also announced the completion of the transaction for the acquisition of MGM Pictures for $8.45 billion, and the technology giants have entered the streaming media field, which in a sense represents a "new hope" for the industry.
Specific to Netflix's powder this time, the reason is simpler:
If there is an explosion, it will increase the powder, and if it is less explosive, it will drop the powder, and the fate of streaming media is mostly like this.
It is not surprising that the fans gained through "Squid Games" last year began to leave, not to mention that before the explosion of "Squid Games", Netflix also had the same user loss.
But the streaming media industry has not really touched the ceiling, the total number of global users is huge, Netflix still has many non-European and American markets to tap, but it needs a lot of investment and localization operations, and continue to use more explosive models to drive user subscriptions.
Corresponding to Netflix's falling powder is Disney's rising fans.
In November 2019, Disney launched its streaming service Disney+ and integrated Disney+, ESPN+ and Hulu into one package. Now, the total number of paid users of the package has exceeded 196.4 million, catching up with Netflix's 220 million.
At the same time, the attack of various technology Internet giants is optimistic about this field.
According to Apple's announcement, Apple TV+ film and television works have received 240 awards and 953 nominations, including Oscars, SAG Awards, BAFTA Film Awards, Critics' Choice Awards, Primetime Emmy Awards and so on.
On March 17 of this year, Amazon announced that it had completed an $8.5 billion acquisition of MGM Pictures.
And their focus is never as simple as selling a few videos.
At present, streaming media is no longer just investing in large-scale productions or being satisfied with blockbusters, but also began to try more peripheral derivative chains, such as exploring film-game linkage, interactive film and television or interactive live-action games.
The streaming media industry has many futures to explore, especially the transformation of IP into peripheral derivatives, and it is the real big future of streaming media to drive related games, toys, theme parks and other peripheral derivative industries to absorb gold through blockbuster films and television.
Zhang Shule is a columnist of People's Daily and People's Post and Telegraph, and a senior analyst in the Internet and game industry