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Netflix’s numbers this week were impressive. In a nutshell, their subscription growth is accelerating – as it should as it rolls out access to a global marketplace and strong demand. Netflix reported 17 million new subs over the past year, compared to 14 million a year ago.
Equity analysts at Exane-BNP/Paribas issued a blunt warning to most conventional and pay-TV broadcasters, saying that many of them need to up their game to stay relevant in today’s fast-changing consumer environment.
The bank’s note to clients stated:
– Broadcasters who refuse to prepare for a future where TV will be primarily consumed online and on demand will fail.
– Broadcasters investing aggressively to change their model face an uphill battle but have a chance.
– Broadcaster with strong content assets will benefit from increased demand.
Specifically, the bank says it sees ProSieben as being well placed, and believes ITV, Sky and RTL “have a card to play but also face specific challenges, and other players are facing likely severe long term headwinds”.