Why HBO Max gained more subscribers and Netflix lost them | streaming platform | ANSWERS

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 Why HBO Max gained more subscribers and Netflix lost them |  streaming platform |  ANSWERS

The two sides of the coin. While Netflix reported one of its strongest falls in the last eleven years, with the loss of 200,000 subscribers in the last quarter; In contrast, HBO and hbo max they welcomed 3 million customers in the same time. For what is this?

MORE INFORMATION: What is Netflix?

Netflix, the world’s leading streaming platform, has had a 35% drop in its shares, to which different factors are attributed and one of those would be the growth of its competition.

The drop in its shares could erase the gain of the past two years, when its business boomed as new customers flocked to its platform to weather the COVID-19 pandemic lockdowns. The world is returning to its previous life, there is no longer confinement, to which the fall of Netflix was also attributed, but the same does not happen with its competition, which -even- has totally encouraging projections.

MORE INFORMATION: HBO Max announces series based on The Penguin from “The Batman”

WHAT IS THE GROWTH OF HBO and HBO Max?

The parent company AT&T points out that HBO and HBO Max accumulated 76,800,000 subscribers in the United States at the end of March this year. The average increase in the last year has been 12,800,000 clients. Projections indicate that the upward trend could continue.

This is due, according to the telecommunications operator, to a solid projection of the content it offers. Meanwhile, WarnerMedia, a subsidiary to which HBO and HBO Max are affiliated, increased its billing by 2.5%.

Early in the second quarter of 2022, WarnerMedia announced its separation from AT&T to merge with Discovery. Among the deals, AT&T shareholders control 71% of Warner Bros Discovery and Discovery investors own 29%.

THE CAUSES OF THE GROWTH OF HBO and HBO Max

According to the 12th wave of the Geca OTT Barometer, these would be the reasons:

  • Rebranding: HBO’s name change to HBO Max has helped the platform grow.
  • Exclusive Movies: HBO Max has the premiere of exclusive movies and series from Warner and its studios.
  • Launching offer: It appeared with an offer of 4.49 euros per month for life, as long as you do not unsubscribe.

WHAT IS THE DOWNFALL OF NETFLIX ABOUT?

Netflix lost a total of 200,000 subscribers in the first quarter of 2022, a period in which it obtained net profits of US$1,597 million, a figure less than US$1,706 million than in the same period of 2021, indicated the Wall Street Journal. And as the icing on the cake, April 19 became a black Tuesday for the platform with a 35% drop in the value of its shares, which reached US$223. This is the biggest crash in more than a decade.

Netflix had planned to add 2.5 million customers in the period under review – and analysts expected even more – but, instead, lost subscribers for a total of 221.64 million viewers., This represents an increase of 14 million of paying users or 6.7% compared to the first quarter of 2021, but a decrease compared to the fourth quarter of last year.

Netflix collapses on the stock market after adding fewer subscribers (Photo; EFE)

WHAT DUE TO THE FALL OF NETFLIX?

The blow that the streaming platform has suffered is mainly due to these factors:

  • Suspension of service in Russia: constitutes the loss of 700,000 subscriptions. “Without this impact, we would have had an additional 500,000 subscriptions,” compared to last quarter, Netflix said in a statement.
  • IExchange of identifiers and passwords: that allow many people not to pay to access the platform. Netflix figures indicate that 222 million active payment accounts on Netflix, but another 100 million households access with the credentials of another user.
  • The competition: New platforms such as Disney+, Hulu and HBO Max have appeared, which also generate their own content.

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