Cheaper streaming services prove to be a challenge for Netflix trying to reach users that don’t pay for watching anything.
MoffettNathanson’s recent report highlights that, in the US, Netflix has gotten as much as it could out of cord-cutting Americans. The study says that since most pay-TV homes already have Netflix, the company won’t be able to acquire new customers even if cord-cutting goes up.
The article shares that 40% of current pay-TV subscribers are “at risk” of ditching cable or it’s like over five years. But with cheaper streaming services rising and generating hype and a lot of ad-supported options available, new customer acquisition could be challenging for Netflix.
This makes international growth even more crucial for Netflix and its investors. Even more so as services like Disney Plus will prioritise the U.S.
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