Netflix Considers Live TV and Bundled Packages to Prevent Subscriber Churn
Netflix considered introducing 'live TV' broadcasting around the clock year-round and launching bundled packages combining third-party streaming services such as NBCUniversal's Peacock to retain subscribers. The backdrop is a recent decline in subscriber engagement and the stock price 12months 40decline.
Get free Netflix, Inc. - Common Stock email updates.
Bullstory sends one daily email when new analysis or important company news is available.
Netflix considered introducing 'live channels' and bundled packages combining third-party services to prevent subscriber churn.
Management reportedly discussed 'live TV' that would broadcast specific programs around the clock year-round.
Another option under consideration is a bundled package combining other streaming services, such as NBCUniversal's Peacock, with Netflix offerings.
Netflix has a library of well-known titles and its revenue has increased, but it has been revealed that subscriber engagement, a key metric, is declining.
Subscriber engagement is a metric measured by combining viewing time and content completion rates, and it is linked to customer satisfaction.
Lower engagement is known to increase the likelihood of subscription cancellations.
Market competition is fierce. Disney, HBO Max, YouTube and others are expanding their influence, while ad-supported free streaming services such as Tubi and The Roku Channel are also increasing.
News of restructuring among media companies is also continuing. Comcast has decided to spin off its media and communications businesses, and Paramount has completed its acquisition of Warner.
Over the past 12 months, the Netflix share price has fallen by 40%.
According to Nielsen, Netflix's 4monthly TV viewing share was 7.8%, the lowest since the same month last year.
Sources: 뉴시스 경제
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.