Netflix earnings to set the pace for 2022 streaming wars

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Netflix will be the first major streaming service to report earnings this week, offering investors a sign of whether companies have started to pull in enough new customers to justify big spending on online programming in 2022. | Reuters

In 2022, Netflix’s growth is expected to stabilize, analysts say, putting it on track to return to subscriber gains logged before the pandemic. The company has new seasons of global phenomenon “Squid Game” and Emmy winner “The Crown” in the works, plus a large slate of movies.

“2022 should prove that no one single company has a monopoly on great content and that time spent on any one legacy SVOD platform is not guaranteed,” media analyst Michael Nathanson wrote in a research note. Evercore ISI analyst Mark Mahaney told Reuters that Netflix will likely continue to add a million subscribers a year in its home market, but that 90 percent of its gains will happen outside of the United States.

Popular Netflix shows like “Squid Game” and the star-studded disaster film “Don’t Look Up” will likely add around 550,000 subscribers in the U.S. and Canada in the fourth quarter, Nathanson predicts. NBCUniversal’s Peacock and ViacomCBS’s Paramount+ are likely to report the greatest gains in the U.S., he wrote, buoyed by National Football League and English football games, and more kids content available on Paramount+.

 

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