Netflix’s strategy to not let Amazon Prime Video and Hulu get close

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Netflix’s strategy to not let Amazon Prime Video and Hulu get close

Although it did well in its last quarterly report, Netflix does not intend to give up ground in the SVOD market , one in which other competitors are steadily gaining ground, Amazon Prime Video and Hulu , are just a few that go to the company’s home of Los Gatos, California. We are talking about a market (SVOD) that for this year alone will represent revenues of more than 19 thousand 572 million dollars , but that will exceed 23 thousand 883 million by 2022 , according to data projected by Statista DMO . And, if we speak in terms of users, we know that Netflix dominates, only in its report corresponding to the third quarter of the year, it revealed that it reached 137 million Indonesia Mobile Database subscribers , highlighting the international markets. The platform has a lot to protect; according to “The Global Internet Phenomena Report”, it already devours 15 percent of connections worldwide. Part of the reason that Los Gatos is the service with the greatest penetration in the market is due to the large amount of content from which it acquires a license and, mainly, which it produces; Between July and September of this year alone, it incorporated around 676 hours of original programming , according to a report by Wall Street firm Cowen & Co. Indonesia Mobile Database

It is public knowledge that the company allocated a budget of 8 billion dollars for content this 2018 , however, it is not enough and it is willing to go into debt to invest more to increase its catalog. This was confirmed by Netflix this week, reporting that it plans to raise around $ 2 billion in debt to finance “general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and possible acquisitions and strategic strategies ”. The bet is risky, this would be the sixth time in less than four years that they resort to this resource to obtain capital , according to Variety. But for the company, the risk is justified . Distance from Hulu, Amazon Prime Video… and company And, perhaps they are not wrong, it is enough to review how the catalogs of the main video streaming services are made up:

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Netflix has 37 percent original content, 34 percent licensed, and 29 percent movies; Hulu, for its part, 54 percent of non-original content, 22 percent of films and 24 percent of its own productions; Meanwhile, Amazon Prime Video , 39 percent is made up of movies, 34 percent of Brother Cell Phone List distributed content and 27 percent of original productions, according to data from Hub Entertainment Research . Although Netflix had a meager second quarter, highlighting the low number of subscribers in the United States , the pace in international markets is much healthier, the third quarter confirmed it with more than 4 million new users. The key is that it has increased its original productions in other countries such as Spain (La casa de papel -before only distributed-, Elite, Las chicas del cable), Mexico (Club de Cuervos, La casa de las flores), as well as Brazil. , Germany or the United Kingdom, without forgetting Asia.

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