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Streaming giant Netflix’s market share slumps

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 11 Oct 2019

Despite international streaming service Netflix’s global market share slumping, it holds 62.6% of global demand for digital original series.

This is according to Parrot Analytics’ latest Global TV Demand Report, which also reveals continued demand for specific genres of content globally.

Science fiction dramas were the most in-demand in half of the markets analysed, while superhero, crime dramas and comedy dramas also showed increased demand across all the markets.

Parrot Analytics, the television data analytics firm focused on gauging trends and demand for content around the world, examined the demand share for global subscription video-on-demand platforms, digital original series popularity, and the market-specific genre demand shares in the second quarter of 2019.

Samuel Stadler, vice-president of marketing at Parrot Analytics, says: “With Netflix taking the lion’s share of global demand for its original series, it’s not surprising that in the second quarter of this year the service continues to lead in the drama genre for most markets.”

The latest report of declining market share comes on the back of missed targets by Netflix across all regions earlier this year and losing US customers for the first time in eight years.

In a letter to shareholders in July, the streaming giant said: “Our missed forecast was across all regions, but slightly more so in regions with price increases.”

The streaming giant had forecast a gain of 300 000 subscribers during the second quarter – April to June – but instead it lost about 130 000 customers in the US market. Analysts had forecast a US gain of 352 000.

Netflix reported it added 2.83 million paid streaming subscribers outside the US, below analyst expectations of 4.8 million, according to IBES data from Refinitiv.

The company entered the South African market in January 2016. Although it does not disclose subscriber numbers by region, it recently told ITWeb that 40% of South African Netflix members enjoy romantic comedies.

According to the company, some of the most watched shows in SA include Isn’t It Romantic, The Princess Switch, Set It Up, Kissing Booth and When We First Met.

“We have seen a keen interest in local content, especially following the launch of Shadow earlier this year as well as the announcement of two local Originals – Queen Sono and Blood & Water, both of which will land in 2020.

“The excitement surrounding these shows has proven there is an appetite for local, quality content that has the ability to resonate with consumers both locally and globally.”

In SA, Netflix competes against the likes of MultiChoice’s Showmax, among other over-the-top service providers.