Netflix Expects To Report Slowest Revenue Growth: Reuters The streaming pioneer has been reportedly staggering under strained consumer spending, rising costs of financing production and increased competition from Disney+ and Amazon Prime

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

One of the most popular over-the-top streaming services and production company, Netflix Inc is expected to report its slowest quarterly revenue growth on Thursday as its ad-supported plan struggles to attract customers in the saturating US market that could pressure the company to pull back on content spending this year, according to a Reuters report.

The streaming pioneer has been reportedly staggering under strained consumer spending, rising costs of financing production and increased competition from Disney+ and Amazon Prime.

In November 2022, Netflix had launched its ad-supported subscription plan. The cheaper ad-supporter plans aimed to regain the lost subscribers and gather new paying customers. The plan named 'Basic with Ads' was launched for the subscribers in the US, UK, France, Germany, Italy, Australia, Japan, Korea and Brazil. But, as per the experts' opinion, the streaming platform hasn't seen a burst of subscriptions.

The $6.99 per month ad-supported plan does not have access to all titles and is not cheap enough to win over significant numbers of customers in the United States and Canada, stated the report.

According to the report, the company is expected to have added 4.5 million subscribers in the fourth quarter, the lowest addition for the holiday period since 2014. It added 8.3 million subscribers a year ago.

Jamie Lumley, an analyst at Third Bridge, in the news report was quoted as saying, "Looking at the saturation of the market and the variety of different options available, and the fact that the pricing is not necessarily significantly below the competition, there are some challenges in attaining those subscriber targets."

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Related Topics

Leadership

International Security Firm Welcomes Female India Native to an Essential Leadership Position

Yasmin Brar has been appointed as the Operations Strategy Director, a role that underscores the company's commitment to innovation, expansion, and strategic management

Growing a Business

The Owners of This Texas Farmers Market Took a Big Gamble. Here's How It Paid Off Bigger Than They Dreamed.

A Texas farmers market educates customers about the importance of shopping local for a healthy lifestyle and an even healthier small business community.

News and Trends

The Transformative Power Of Entrepreneurial Households In Shaping The Future Of The Indian Economy

According to the report, India's 247 million entrepreneurial households drove an $8.8 trillion transaction value in FY23 unleashing a new economic landscape.

Thought Leaders

8 Reasons Why We Need Entrepreneurs Now More Than Ever

Entrepreneurship is the driving force behind the global economy's growth. Now more than ever, we need new entrepreneurs to spur innovation.

News and Trends

Kaynes Semicon To Invest INR 4,000 Crore On OSAT/ATMP

The investment is expected to create around 1,000-plus jobs