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    Home » Netflix users fall for fourth month in a row due to stream inflation
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    Netflix users fall for fourth month in a row due to stream inflation

    By Rita LiMay 7, 2024No Comments2 Mins Read
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    • The number of downloads and active users saw a significant decline in April amid intensifying competition within the video streaming services industry.
    • Downloads and monthly active users (MAUs), including those of Netflix Inc (NFLX.O), Paramount (PARA.O), Walt Disney Co (DIS.N), and others, collectively dropped by 4%.

    Some analysts suggest that the growth of these service companies is increasingly sluggish, with demand picking up following a period of rapid expansion due to COVID-19.

    A fierce competition

    The video streaming industry is characterized by intense competition, propelled by technological innovations, content creation, and evolving consumer tastes.

    Streaming platforms like Netflix, Walt Disney engage in fierce competition to secure exclusive rights to sought-after content, spanning original series, films, and sports events. Consequently, this dynamic has triggered bidding wars and substantial investments in content production.

    As mature markets become saturated, streaming services are increasingly focusing on international audiences to fuel their growth. This trend has intensified competition in regions such as Asia, Europe, and Latin America, where local players are also aggressively vying for market dominance.

    Also read: Meta denies allowing Netflix access to users’ private information

    Demand shrinks

    In mature markets such as the United States and certain parts of Europe, the video streaming services market may be nearing saturation. A significant portion of consumers already subscribes to one or more streaming platforms, resulting in slower growth rates as the market reaches saturation.

    Also read: Meta accused of sharing user data with Netflix

    As content creators and media companies roll out their streaming platforms (e.g. Disney+, HBO Max, Peacock), content availability becomes fragmented across multiple services. This fragmentation can pose challenges for consumers in finding their favorite shows and movies, potentially leading to a reduction in overall demand if consumers feel dissatisfied with the content offerings on individual platforms.

    Netflix Technology Trends
    Rita Li

    Rita Lian intern reporter at BTW media dedicated in Products. She graduated from University of Communication University of Zhejiang. Send tips to rita.li@btw.media.

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