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Netflix Loses 31% Market Share as Streaming Rivals Gain Loyal Subscribers

·2 min read
mphillips007 / Getty Images
mphillips007 / Getty Images

Netflix has held the media-streaming crown for some time, but the forced evolution of media companies during the pandemic seems to be changing that.

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According to The Wrap, Netflix lost 31% of its market share in the last year. Competitors like HBO Max and NBCUs Peacock have chipped into their audience during the pandemic, giving viewers new options for content, they add.

Netflix still dominates 20% of the U.S. streaming market, but its dominance has shrunk form 29%, according to data hared by Ampere Analysis with TheWrap.

This comes after several setbacks the company faced this year not related to the pandemic. In August of 2020, Netflix lost a substantial number of subscribers after the streaming of controversial French film “Cuties.” People argued the film sexualized young girls, and Fx Empire reports that the controversy and exodus of subscribers that followed was large enough for some analysts to lower 2020 Q3 expectations.

Then in October 2020, earnings rose from $1.47 to $1.74, but widely undercut the Wall Street expectations of $2.13 and the company’s own outlook of $2.09, Deadline reports. The miss, they add, was the biggest for Netflix since going public in 2002.

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Even so, Mediaplay says Netflix shouldn’t be worried. In 2020, Netflix generated ore than $25 billion in revenue and added a record-breaking 37 million subscribers globally, of which 80% came outside of the United States.

Still, competitors like Disney+ and Hulu are gaining steam. With Disney’s rollout of its Disney+ streaming platform, it has amassed nearly 100 million subscribers. The Verge reports that Disney had planned to reach 90 million in four years, but blew past the number in early Q1 of this year.

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Netflix will have tough competition to face this year to meet Wall Street’s expectations, especially if the switch to streaming becomes permanent post-pandemic.

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This article originally appeared on GOBankingRates.com: Netflix Loses 31% Market Share as Streaming Rivals Gain Loyal Subscribers