Netflix is an older Alien Invader in EkaLore’s view. It was the early big success invading sucking revenue out of broadcast and cable TV, Video Stores, and theaters. Now it has enormous competition, but it still is holding its own.
Their Q3 2022 shareholder newsletter brings good news in terms of subscriber gains, but dig a little deeper and the picture becomes more nuanced. The Netflix customer base is changing, and the additions to revenue come from less profitable arenas. In other words, Netflix has entered the Red Queen’s country, it must gain twice as many subscribers to keep up with its old expectations.
Q3 2022 is the first time that EMEA subscribers at 73.53 million exceed UCAN (US and Canada subscribers at 73.39 million. In terms of subscriber gain, EMEA grew by roughly 560k subscribers, five times that of the UCAN gain of 100k. That matters a lot for top-line revenue because the average revenue per membership in EMEA is USD $ 10.81 vs UCAN USD $ 16.37.
DisneyPlus is also experiencing gains in the international marketplace with different revenue per customer than in the US. When its numbers come out, EkaLore will compare its results to Netflix.
You’ll find that and other pieces on enterprises that are invading other marketplaces and crowding out the incumbents at www.ekalore.com/alien-invaders
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