OTT Demand: Originals Demand Drop Down Below 50 Percent
Alarm bells have been sounded for OTT Netflix, which still has the largest share in over-the-top (OTT) video streaming services. Viewers flocking to the hunt for innovative entertainment on OTT are increasingly turning to Disney Plus. According to Parrot Analytics, an agency that collects data on demand for entertainment content on OTT. The demand for Netflix originals among viewers is less than 50 percent. This is believed to be a big sign of the decreasing interest of the audience in Netflix. However, Netflix in its second-quarter results has considered the future as a good time for the OTT business.
Tremendous stir in the OTT market
Parrot Analytics is a major US-based agency that tries to find out how much any video streaming service can attract new customers with its content. Releasing data for the second quarter of this year, Parrot Analytics claimed that in the case of Netflix, this demand has come down by more than 50 percent. Since the publication of this survey on almost all newspapers and news portals of America. There is a tremendous stir in the OTT market there.
Netflix has a severe shortage
Netflix's Indian business also seems to be faltering since last year. At least six top executives of the company have also been discharged in recent months in connection with the same. It also includes the name of Srishti Bahl, who played a key role in the establishment of Netflix in India and the company's recognition with the big filmmakers of Mumbai. But, Netflix's marketing team's belief in numbers more than quality seems to be weighing down for Netflix in India too. The company is failing to deliver its products to customers who regularly include entertainment content in their monthly spending budget. Netflix also has a severe shortage of interesting content to suit Indian tastes.
The company's quarterly results
Parrot Analytics also said in its report that the lack of new hit original programming and continued competition from other streaming services have negatively impacted the growth and retention of Netflix's subscribers. This report came at a time when Netflix announced its quarterly results on Tuesday itself. According to the results, the company has added 1.5 million new customers in the last quarter. Netflix management is working on a plan to add 3.5 million new subscribers in the third quarter, although its investors expected it to add at least 5.5 million subscribers in this period. After the company's quarterly results, its shares also saw a fall.
Long-term plan to deal with the rapid movement
Netflix has suffered the biggest setback in its traditional market America and Canada. The company has lost four lakh 30 thousand customers in this area. According to the report of the second quarter, the total number of Netflix subscribers is close to 200 million 9 million. In a letter sent to its shareholders, Netflix has blamed it on the disruptions in the entertainment world due to the Kovid epidemic. But, experts say that Netflix does not have any long-term plan to deal with the rapid movement in the OTT market.
Amazon bought MGM Production Company
America's entertainment market has been quite a bust this summer. Disney, which had bought out Fox's business, announced the purchase of Warner Media in May this year. Soon after, Amazon bought MGM Production Company, which had a monopoly on the James Bond series of films. However, Netflix executives have distanced themselves from any such acquisition or purchase and if they look at their statements, they do not even consider it a wise move.
Share of the OTT market
Netflix has been continuously ignoring the progress of OTT companies growing faster than it. But, market data shows Disney doubled its share of the OTT market in the second quarter from the same period last year. The steady increase in subscribers of Amazon Prime Video, Apple TV, and HBO Max is also a big alarm bell for Netflix. However, in a letter to its shareholders. Netflix has considered the OTT industry at a very early stage and said. We have a lot of time to grow and we are also fully confident of achieving it.
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