SVOD: Stop or again?

The plight of American streamers is worrying the streaming world as fears that Netflix will drag the entire market with it are beginning to be taken seriously. As evidence, the reaction of investors. The latter moderately praised Netflix’s slowdown in recruiting new subscribers. Moral: stock market prices collapsed, and so did the market capitalization of companies.

Thus, since the beginning of the year, Netflix has lost almost 70% of its value, while Disney has fallen in price by 34%, Comcast – by 21%, and Warner – by 20%. Some funds even left Netflix in ruins and losses, and small shareholders filed a complaint against the firm Los Gatos, accusing it of misleading them about the evolution of the subscriber portfolio.

While Netflix lost 200,000 subscribers, Warner Bros.

Therefore, the market is wondering about the prospects of the SVOD market, which now has to deal with several sources of subscriber flight: account sharing, a “churn and return” phenomenon often associated with the dual effect of frustrating programming and price increases, but above all, an increase in capacity free offers with AVOD and FAST channels.

Thus, the publication of reports by Disney+, Netflix’s main paid competitor, will provide analysts with very important information about the ability of the SVOD market to withstand a situation that, according to some observers, could turn into a rout. The decision needs to be weighed as the number of SVOD subscribers should continue to grow, according to Digital TV Research forecasts that Western Europe should reach 258 million subscribers in 2027, up from 164 million at the end of 2021.

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