A new video-streaming research report from Price Waterhouse Cooper (PwC) says that Netflix may not have much more room to grow in the United States — particularly as new rival services from Disney and WarnerMedia are ready to enter the market.
“Netflix appears to be nearing its peak subscriber point in the U.S.,” thre consulting firm, the firm said in its Global Entertainment & Media Outlook 2019–2023 report released this week.
Among its findings, in the first quarter of 2019, Netflix added a net 1.74 million streaming customers in the U.S., to reach 60.2 million paid subscriptions. The company projected 300,000 U.S. net additional subscriptions in Q2 (versus 870,000 in the year-earlier quarter). PwC noted that domestic subscribers accounted for just one in seven of Netflix’s new subscribers in Q1.
Netflix has consistently told Wall Street that it believes it can grow its streaming service to 60 million-90 million members in the U.S., so it’s now in that range.
“The first-mover advantage in streaming video that Netflix has capitalized on to date continues to be eroded, as the industry begins to fragment, with more and more companies entering the market, from pay-TV heavyweights to specialized, niche players,” PwC said in the report.
Subscription video-on-demand (VOD) is growing faster than most sectors of media and entertainment, according to PwC.
The report is PwC’s 20th installment in its annual series, compiled by partners and professionals in the firm’s entertainment and media practice.