Netflix has excessive ambitions, and subscribers may pay the price
A few weeks ago, Netflix greatly increased the price of its prices in France. Unfortunately, given the management taken by the firm to the strong ambitions, these regular increases may not stop anytime soon, quite the contrary.
Netflix wants the 1000 billion (of a thousand sabords)
At the beginning of April, the very serious Wall Street Journal Reported by the voice of the co-PDG Ted Sarandos that Netflix had two ambitious objectives to achieve by 2030.
The first is to enter the closed club of companies valued at a trillion of dollars, or a thousand billion. For join Apple,, AlphabetMicrosoft, Nvidia and other Amazon, it will however be necessary to put the literally double bites, since for the moment Netflix is located at $ 479 billion in valuation.
But how do you get there? First of all, it could be simplified by fulfilling its second objective, namely to enlarge its subscriber base. For this, for example, we will have to find new markets, grow in those where the firm is already present, and offer new things in its catalog (such as video games recently), ideally exclusive. Its extension outside the SVOD, with in particular physical experiences, could also be a way to achieve it.
Prices that may continue to climb
However, to attract crowds, activation of another lever difficult not to touch may complicate Netflix’s task. This lever, ideal for reaching 80 billion annual turnover targeted by 2030 (including nine billion thanks to the offer with advertising), it is obviously that of the subscription price.
But by dint of climbing the prices (or adding advertising in the most affordable package), it is impossible not to lose subscribers along the way. To hope to achieve its goals in the years to come, Netflix will therefore have to transform itself and be very convincing to hope to keep access to the user portfolio.
