White Paper: Netflix and Share of Mind
IS SLOWER SUBSCRIBER GROWTH A PROBLEM UNIQUE TO NETFLIX? OR EVIDENCE OF A CHALLENGE ALL PROVIDERS WILL EVENTUALLY FACE?
In July, Netflix reported results showing that subscriber growth in the U.S. has finally leveled off and that churn was higher than expected. Analysts and Netflix themselves have attributed this to Netflix’s saturation of the U.S. market, and its increases in price. But our analysis suggests that this slowdown is also driven by factors that all TV providers will have to negotiate as the TV marketplace becomes more crowded, and more competitive.