Netflix's Dominance Starts to Slow as Streaming Rivals Gain

The New York Times reports: Netflix still rules the streaming universe. As of the end of March, it had 207.6 million total paying subscribers, with about 67 million in the United States, the company noted in an earnings report on Tuesday. But its main competitors — Disney+, HBO Max, Paramount+ and AppleTV+, as well as the old-guard streamers Amazon Prime Video and Hulu — have cut into Netflix's share of viewers' attention... according to the data firm Parrot Analytics, which has developed a metric to rate not only the number of viewers for given shows, but their likelihood of attracting subscribers to a streaming service. In its latest rankings, Parrot reported that Netflix's share of total demand — a measure of the popularity of its shows — was slightly above 50 percent for the first three months of the year, compared with 54 percent a year ago and 65 percent in the first quarter of 2019. In other words, competitors have started eating into Netflix's dominance. That showed up in the numbers. For the first quarter of 2021, Netflix reported the addition of four million new customers, below the six million it had forecast. The company expects to add only one million new customers for this current quarter ending in June. Netflix shares plummeted about 10 percent in after-hours trading on Tuesday, after the earnings announcement... Although competitors are gaining ground, Netflix is in its best financial shape of its history. It hit a milestone at the end of last year, when it said it would no longer look to borrow money to fund its content slate. Another way to look at it: Netflix finally became a truly profitable business after topping 200 million subscribers, each paying an average of $11 a month. In other words: Its competitors are still losing lots of money on streaming.

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