Reed Hastings announced the latest figures from the streaming company. Photo: courtesy Netflix.
Among the announcements about key subscription changes in Argentina and other Latin American countries, Netflix has released its numbers for the second quarter. During the presentation of the results, Reed Hastings, chief executive of the company, said that the days of traditional television are numbered.
A panorama in line with the new standards –which will affect Argentine users– implemented by Netflix when sharing screens.
The platform announced it in these four months it has lost 970,000 subscribers. That hasn’t stopped its CEO from weighing on the future of the small screen. “In the next five or ten years it will be the end of linear television”condemned the Netflix co-founder while discussing the service’s financial and subscriber data.
Despite the loss of nearly 1 million users – the deepest decline in its history – the loss was actually a win for the entertainment giant, as it initially expected to lose 2 million by the end of June.
A message with ulterior motives
Hastings’ predictions for the future of more traditional television looked bold. But it’s not like they shocked everyone, considering his position CEO of the world’s leading streaming service.
In less and less time, audiences will be migrating entirely to streaming services, says Netflix strongman. Photo REUTERS
It is clear that Hastings’ message has a clear purpose. Declaring the death of traditional TV implies that in the future the world will have no other alternatives to streaming, an industry that has exploded in recent years with the appearance of HBO Max, Disney Plus and Amazon Prime Video, among others.
In a letter addressed to shareholders aiming to decompose Netflix’s performance in the second quarter, it read: “In the United States, one of the most competitive markets in the world, we got more hours of television viewing than any other medium during the 2021-22 seasonalmost equaling the combined total of the two most followed streaming networks. “
Furthermore, according to numbers from Nielsen, the leading audience measurement company, Netflix’s share in the United States has reached an all-time high of 7.7% in June (compared to 6.6% in June 2021).
Supplements in Argentina
The drop of 970,000 Netflix consumers occurs two days after the announcements of changes to the subscription format that will affect Argentine usersas part of a global initiative to compensate for economic losses.
After announcing a pilot test to start in early June charges additional fees in Peru, Chile and Costa Rica for password sharingNetflix has extended its new business plan to subscribers in our country, El Salvador, Guatemala, Honduras and the Dominican Republic.
Starting August 22, Netflix will roll out an alternative feature that will allow you to “Add a Home”, and with it an additional cost that will affect current subscriptions: Basic ($ 429 pesos plus VAT), Standard ($ 799) and Premium ($ 1199). The idea is to discourage the usual practice of sharing accounts.
Netflix remains the number one platform with over 220 million customers around the world, but it is clear that it needs more subscribers. And to achieve this, he is putting all his efforts into this strategy.
CJL
Source: Clarin
