Netflix has become very popular among mass-market video streaming services. It can be said to be a guide to most platforms. There is no doubt that Netflix is the first thing that comes to mind whether you want to watch a movie or a TV show. Although many competitors have recently entered the industry, Netflix continues to dominate.
However, Disney Group’s check on this dominance is a matter of discussion. Netflix started in 1997 in America. It was started by two people named Reed Hastings and Mark Randolph. Initially, it was a mail-order DVD rental company. After ten years..that is..in 2007 it became a subscription-based streaming service. Although there were other video streaming platforms in those days, Netflix stood out.
Following the subscription model and owning a large number of distribution rights from studios helped Netflix. As a result, the company developed rapidly. Emerged as an industry leader. Between 2007 and 2022, Netflix subscriptions will grow from 7 million to 221 million. This increase of almost 3 thousand percent should be described as a kind of miracle.
However… Netflix’s unstoppable journey has become the talk of the industry as it slows down a bit. Analysts say that the main reason for this is that Disney is making inroads in this sector. The Walt Disney Company entered the video streaming industry in 2009. It initially joined Hulu as a minor stakeholder.
Later, gradually increasing its investments, it bought a 33 percent stake in video streaming technology company Bam Tech Media in 2016. In 2018, it once again acquired a majority stake and changed the brand name to Disney Streaming Services. Launching ESPN Plus along with Disney Plus, Twenty-First has also taken a major stake in Hulu and Star Plus by acquiring Century Fox.
It should be noted that even though Disney came on the screen 12 years later than Netflix, it did not take much time to persist in this field. A noteworthy development is that in the recently ended second quarter of this financial year, the number of combined subscribers of all platforms in the Disney group surpassed that of Netflix.
Meanwhile, services like HBO Max and Amazon Prime Video are also gaining subscribers. In this background, there are doubts that Netflix has taken a step back. In April this year, Netflix announced Q1 results. However.. it was surprising to announce that they lost 2 lakh subscribers simultaneously.
However, it is not uncommon for the platform to still have over 200 million subscribers. This is the first time in ten years that the number of Netflix subscribers has decreased. As a result, the stock value of the company is limited to less than 200 dollars. This is also the first time since 2017 that Netflix’s share value has fallen this low. After five years.. that is.. even on October 10, 2022, Netflix’s stock value remained at 230 dollars.
Due to this.. it can be understood that it has fallen by more than 30 percent compared to Q1 results. In this situation, Netflix has announced that it will launch a low-cost, ad-supported service in November this year. Platforms like Peacock and Paramount Plus have been offering these services for the past few years. And.. to what extent Netflix’s efforts will bear fruit. Time will tell who will win this battle.
