Netflix Q2 2021 Results – The New York Times

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The cracks appear in Netflix’s world domination.

Netflix is ​​still the king of video streaming, but audiences are slowly turning to new rivals, namely Disney + from the Walt Disney Company, according to research from Parrot Analytics.

Netflix’s share in the interest of global demand – a measure of the popularity of its Parrot-created shows and a key barometer of the number of new subscribers a streaming service is likely to attract – has fallen below 50% for the first time in the second quarter of the year. .

The “company’s lack of successful original new shows and increased competition from other streamers will ultimately negatively impact subscriber growth and retention,” Parrot said in a press release.

Netflix relies on making as many different shows and movies for as many different audiences as possible, and the pandemic has upended that formula, forcing productions around the world to stop.

The company will report its second quarter financial results on Tuesday afternoon and has already told investors not to expect too much. He set the bar surprisingly low for the quarter when he told Wall Street he planned to add a million new subscribers, a slight increase from his current total of 207 million customers. (It should be noted that lower expectations are easier to beat, and beating expectations by even a hair’s breadth can increase a company’s shares.)

Disney + more than doubled its interest share of demand in the second quarter compared to a year ago, and Amazon Prime Video, AppleTV + and HBO Max are also gaining, according to Parrot.

Even as new entrants eroded Netflix’s long-standing grip, Netflix co-CEO Reed Hastings rejected the competition as Netflix’s contender for the throne. In April, after investors asked Mr. Hastings why the company had failed to meet its expectations of adding new customers in the first quarter, he said, “Of course we are wondering, ‘Hey well, wait a sec, are we sure this competition? ‘”

“We really looked at all the data, looking at different regions where new competitors are launched, not launched,” he continued. “And we just can’t see a difference in our relative growth in these regions, which gives us confidence.”

“We have been competing with Amazon Prime for 13 years, with Hulu for 14 years,” he added. “He’s always been very competitive with linear TV as well. So there is no real change that can be detected in the competitive environment. He has always been high and remains high.

In other words: If Disney + hurts us, we haven’t seen it.

The argument that Netflix has long competed with regular TV and other streamers overlooks the fact that new rivals like Disney + and AppleTV + are much cheaper than Netflix (and subscription TV). And while these services produce far fewer originals than Netflix, they seem to get more for their money.

In the second quarter, Disney + sparked strong interest in demand for “The Falcon and the Winter Soldier,” a series based on the Marvel Cinematic Universe that has largely dominated the box office in recent years. “Loki,” another Marvel spin-off, also helped, according to Parrot.

Amazon Prime Video received a boost during the period with the launch of “Invincible,” an animated superhero series for adults. And AppleTV + has attracted new customers with a trio of originals: “Mosquito Coast,” a drama based on the 1981 novel; “For All Mankind”, a science fiction series and “Mythic Quest”, a comedy series set in a game development studio.

Speaking of which, Netflix announced this month that it plans to launch into video games. He hired a game manager, Mike Verdu, formerly of Electronic Arts and Facebook, to oversee the development of his new games. This is a potentially important move for the company, which has not strayed from its formula of television series and films.

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