Netflix’s plans to revive its slowing subscriber growth will be in focus when it reports second-quarter results on Tuesday (July 20), as lockdown binge-watching subsides and competition from Disney+ and HBO Max ramps up.
Netflix has forecast it would add just 1 million subscribers globally in the second quarter, a tenth of what it added a year ago when COVID-19 restrictions forced people to seek entertainment at home.
The streaming pioneer has also been losing market share to new services such as Disney+, Apple’s Apple TV+, WarnerMedia’s HBO Max and Comcast’s Peacock.
To be sure, the industry’s overall subscriber growth has also slowed as the U.S. market saturates.
Some Wall Street analysts have said a first-mover advantage will only take it so far and that Netflix needs to produce new content, renew content licenses and explore other revenue sources such as live sports and advertising to turbo-charge growth.
(Production: Aleksandra Michalska)