Well, the Albanian army won. Time Warner followed Netflix streaming, NBCUniversal and Disney followed and so on. In Britain, the BBC and ITV have invested in their streaming portals. The media now lived in the Netflix world. In the years that followed, success hits – from Stranger Things to Bridgerton – consolidated Netflix’s position as the world’s leading streaming service. Subscribers flourished as the coronavirus caused much of the world to shut down. And then in January the explosion seemed to be over. , Globally, Netflix announced that it expects to add only 2.5 million new subscribers in the first three months of the year, well below the 4 million in the first quarter of 2021. The news helped to disappear nearly $ 45 billion (33 33 billion £). ) from their value as Investors worried that Netflix’s glory days were over. The narrative was further enhanced last month when Coda won Jane Campion’s Power of the Dog for the Oscar for Best Picture. The moving story of a deaf adult child was produced by Apple, while the critically acclaimed Campion’s western was produced by Netflix. It was the first time a movie released by a streaming service had won a top Oscar. Having redefined the media landscape, Netflix was in trouble, and now – for some – it’s time for Netflix to change its game. Our dissertation is that you must have new and Laura Martin sports For Laura Martin, a Needham & Co analyst, what was once Netflix’s main asset has become his biggest weakness. Last quarter, Netflix released the biggest TV show of the year, Squid Game, and the two biggest movie releases ever made, Red Notice and Don’t Look Up. The company spent $ 17 billion on content in 2021 and is expected to spend about $ 19 billion in 2022. But that was not enough to keep up with the kind of growth that Wall Street is used to. “Prototypes and entertainment content are no longer enough,” Martin said. “Our position is that you have to have news and sports. “You have to have breaking news because they bring people when, for example, Russia invades Ukraine or sports, because when there is a very good game, then people flock to you and stay there.” Entertainment alone, he argues, is very limited and the success of the company may have blinded them to the need to offer a greater variety of content. When Netflix was launched, its main competitors in the US, its largest market, were cable companies offering sports and news as well as entertainment, but at a much higher price. “In the beginning, when it was $ 15 a month and they had great library content from all the big studios, it was a very good deal,” he said. “Now that all the big boys are in business, they all have much bigger libraries than Netflix and they have news and sports. “The competitive landscape has changed for Netflix and they are not changing.” But while Netflix may not be growing as fast as it used to, it’s too early to delete it. Even another disappointing quarter – and another drop in the share price – is unlikely to reduce the flow company’s enormous power in a media world still catching on. Netflix had 222 million subscribers worldwide at the end of last year. People spent 1.65 billion hours watching Squid Game in its first four weeks. And it’s still one of the best performing stocks of the last two decades, gaining more than 34,000% of the company’s initial public offering in 2002. It made $ 5.1 billion in 2021 and the content budget is the dwarf of most its traditional rivals in the media. There has been a “resurgence,” said Brian Wieser, global business intelligence chief at GroupM. In part, this reset is a “recognition that the streaming business’s finances are not as good as the traditional multimedia business.” However, this traditional media business is still in trouble, and if you take a step back and look at what Netflix and its peers in the media landscape are doing, he argues, it’s clear that the flow is here to stay and it’s traditional media companies that remain at greater risk. “We are moving into a much more globalized economy and this is a much more globalized media industry than ever before,” Wieser said. Successes such as South Korea’s Squid Game and All of Us Are Dead show that Netflix remains the leader in this global market. “They are so much bigger in this area that growth will of course be more limited,” he said. “This does not mean that the business is weak or that the long-term profit profile is not stable.” “Sometimes we lose sight of the perspective on these things,” Wieser said. “When you still have one of the most valuable multimedia companies in the world and you are still arguably one of the most influential multimedia companies because of how much you spend on content, were the recent results really disappointing or were expectations inconsistent?” Were the recent results really disappointing or was it a mismatch of expectations? Brian Wieser The streaming world, meanwhile, continues to chew on the ad-supported traditional TV and cable TV business, and this, combined with Netflix’s global media vision, gives it and its rivals ample room for growth. . Competitors may have lamented Netflix’s New Year’s crisis, but the fall has hit neither the scale of its ambitions nor the depths of its pockets. ITV UK recently announced a new streaming platform, ITVX, hoping to be a “national champion” in the battle for British viewers against the streaming giants. The multimedia company’s total content budget is expected to be 23 1.23 billion this year. Netflix alone will spend 11 times as much. In the U.S., consumers spent about $ 140 billion on professional video content last year, from cable content and theatrical imports to streaming services and physical media purchases. Flow services represent about $ 30 billion of that money. The cable is still making $ 100 billion, but it is still losing subscribers. From 2016 to 2021, pay-TV lost more than 50 million adult viewers in the US, and less than half of households in the US will have cable TV subscription by 2023, according to a study by Insider Intelligence. Undoubtedly, even his recent defeats show that Netflix is ​​winning. The fact that the battle for the best picture this year was a battle between Apple and Netflix shows how firmly the streamers are integrated. The days of Netflix being the Albanian army may be over, but the truth is that multimedia companies are all Albanian now.