Part Two: Netflix Trends, International, Feature Films. Through the first six months of 2019, Netflix’s customer acquisition costs have ballooned to $292 per subscriber.
Part One: Netflix Subscribers and Exclusivity. Netflix lost subscribers in the United States for the first time in nearly a decade. The next battleground in streaming will take place over content exclusivity.
Beyond ballooning content and acquisition costs, fueled by costly debt, there are five additional obstacles that will challenge Netflix’s streaming dominance.
Starting in 2020, films released by Lionsgate will be distributed on the Hulu streaming service, and FX, the basic-cable channel now owned by Disney after the takeover of Fox.
After years of internal divisions, family squabbles, lawsuits, and sexual harassment investigations, Viacom and CBS are starting to resemble real companies again.
Television advertising sales in the U.S fell 8% to $61 billion in 2017 – the biggest slump in 20 years. Sales at cable networks dropped for the first time in a decade.
After decades of stifling innovation and blocking new content delivery models, cable companies are paying a hefty price that shows no sign of stopping.