Monopolies in the VOD market are not favorable for customers, but fortunately, there is plenty of competition for Netflix. However, many companies like The Walt Disney, Warner Bros. Discovery, Comcast, and Paramount Pictures are currently facing significant financial losses. In total, it is estimated that these major enterprises, which offer both video streaming and traditional entertainment services, have suffered losses of up to $5 billion.
Facing the threat of cost-cutting measures or even mergers, discussions have already taken place regarding a potential merger between Paramount Pictures and Warner Bros. Discovery. HBO Max, the owner of Warner Bros. Discovery, lost over 2 million subscribers in the last two quarters mainly due to price increases. This only confirms that competition for Netflix is growing, but in the longer term, it still remains the most important player in the market.
However, not all companies are struggling. Netflix saw a growth in revenue in the last quarter thanks to a gain of 9 million new subscribers. This is a notable achievement considering the high subscription cost and the limitations on account sharing. Netflix’s position remains dominant despite increasing competition.
Streaming services, although continuously evolving and gradually replacing traditional media, also face numerous challenges. For example, despite gaining 8 million subscribers on Disney+, The Walt Disney Company has lost significant sums of money. Many companies in the streaming industry will need to make difficult decisions in the coming years to survive and succeed.
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