Netflix
NFLX
continues to expand its international content with the upcoming release of Danish shows and movies.
The streaming giant recently announced a couple of Danish titles including the thriller series
The Nurse
and the feature film
A Beautiful Life
, scheduled to be launched in 2023. A couple of other Danish titles to be launched include Nicolas Winding Refn’s
Copenhagen Cowboy
and
Ehrengard
, a Danish feature film directed by Bille August.
Apart from Danish language content, Netflix is expanding Korean content. Five Korean shows were launched this month including
Money Heist: Korea – Joint Economic Area Part 2
(Dec 9),
Alchemy of Souls
(Dec 10),
Single’s Inferno Season 2
(Dec 13),
The Interest of Love
(Dec 21) and
The Fabulous
(Dec 23). It is also set to launch
The Glory
on Dec 30.
Netflix’s ever-expanding foreign language content portfolio has been a major growth driver as the company continues to face stiff competition from the likes of
Disney
DIS
,
Apple
AAPL
and
Comcast
CMCSA
in the streaming space.
Netflix, Inc. Price and Consensus
Netflix’s Prospect Gloomy in 2023
Netflix shares have declined 50.6% year to date, underperforming the Zacks
Consumer & Discretionary
sector, which dropped 37.5% over the same time frame. It has also underperformed Disney, Apple and Comcast, shares of which have declined 43.9%, 30.3% and 23.7%, respectively.
Netflix is suffering from waning demand as the subscriber base dwindles amid tough competition. Netflix’s latest ad-supported service also failed to excite its user base. The ad-supported plan, launched on Nov 3, accounted for only 9% of new Netflix sign-ups in the United States during November.
Moreover, Netflix is expected to face competition in the ad-supported streaming market from the likes of Disney and Comcast.
Disney followed in the footsteps of Netflix to offer its ad-supported tier starting Dec 8, 2022. The company’s streaming service Disney+, as of Oct 1, 2022, had 164.2 million paid subscribers compared with 118.1 million as of Oct 2, 2021.
Comcast’s Peacock also offers a free-to-watch tier with ad support that has about 40,000 hours of content. Peacock is well poised to grow, owing to its vast library of IPs and new productions.
Netflix currently expects to gain 4.5 million paid subscribers in fourth-quarter 2022. In third-quarter 2022, it gained 2.41 million paid subscribers globally, higher than its estimate of gaining one million users. At the end of the third quarter, this Zacks Rank #3 (Hold) company had 223.09 million paid subscribers globally. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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