Nearly one million accounts still rolled the credits on their subscription. That shows how tough things are for the world’s biggest streamer.
It’s hard to squeeze more revenue out of the group’s biggest markets. Pretty much everyone who will ever get a Netflix subscription in the US and Canada already has one.
That puts the pressure on emerging economies. This is a great growth opportunity – in fact, India was the reason behind the subscriber beat last quarter.
But these regions generate much less revenue, and moving them up the scale when it comes to Average Revenue per User will take a lot of time and money.
Netflix cannot afford for customers in developed countries to switch off completely.
The group spent upwards of $17billion on content last year. That’s likely to continue rising with no back-catalogue of hits to fall back on, unlike Disney+ or Amazon’s new MGM Studios content. Netflix spends big just to keep hold of the customers it already has.
