On Thursday, streaming giant Netflix is predicted to announce its lowest quarterly revenue growth as its ad-supported scheme faces difficulty in drawing in patrons in the saturated US market. This may lead to the company potentially decreasing content spending this year.
The company has been struggling with diminished consumer spending, surging expenses of producing content and intensified rivalry from Disney+ and Amazon Prime. The company had set high expectations for the release of its ad-supported tier, however, experts assert that a surge in subscriptions has not occurred.
The company is estimated to have acquired 4.5 million subscribers in the fourth quarter, the smallest addition for the holiday period since 2014. It acquired 8.3 million subscribers a year ago.
Analysts claim that the $6.99 per month ad-supported plan, which does not grant access to all titles and is not inexpensive enough to captivate a substantial number of patrons in the United States and Canada.
