Netgem at 400k subs
June 1, 2022
Netgem has announced that its total number of subscribers reached 400,000 at the end of May 2022, compared to 363,000 at the end of December 2021 – an annualised growth rate of 25 per cent.
Netgem said it expects more pronounced growth in the second half of the year – due in particular to the recent launch of a series of partnerships –
The Griup has confirmed its objective of half a million subscribers by the end of 2022.
The Group’s B2B and B2B2C markets demonstrate their growth potential, thanks to the success of the partnership model with telecommunications and entertainment operators and the rich and diversified offer of Netgem content:
- In the UK, the launch of the Talk Talk 4K by NetgemTV product on all distribution channels in March 2022 has been a success, integrating content partners such as Freeview, BT Sport, Netflix, Now, Prime Video and TikTok. The group has also signed new agreements with several local alternative operators to provide them with its NetgemTV solution.
- In Northern Europe, Elisa is continuing its growth with the Elisa Viidhe product in line with the past two years.
- In France, the group strengthened its portfolio of 100 per cent OTT solutions fully operated by Netgem, in particular for publisher customers, with the launch of the Gaumont Classique SVoD service. The Group has also strengthened the scope of its offer with the availability of VIVA by Videofutur on Android TV, Apple TV and with the launch of the VIVA Smart subscription option.
The Group is also continuing its technological and environmental innovation efforts with the launch of ‘Responsible Streaming’ currently being extended to all of its OTT services. ‘Responsible Streaming; allows each user to voluntarily limit their bandwidth level, without significant degradation of viewing quality, in order to reduce environmental impact. In addition, the group chose the Freeview hybrid solution to be deployed in the UK, which consumes significantly less bandwidth than other solutions and is more efficient in terms of environmental impact.
In the context of emerging from the health crisis and current geopolitical tensions, the Group is little affected by the Russian-Ukrainian conflict and has taken the necessary measures to limit its impact on its activity.
In the current inflationary context, Netgem has already obtained price readjustments from its customers to preserve the profitability of its contracts. Under these conditions, te group says the growth of the subscriber base will lead to the growth of turnover and gross margin, with a positive effect on EBITDA and on cash generation.
Mathias Hautefort, CEO of Netgem, commented: “The start of 2022 confirms Netgem’s growth trajectory thanks to our Content-as-a-Service model. Netgem reaffirms its ambition to continue its development at the service of entertainment players, by expanding its end-to-end managed offer and its customer base. In addition to its main line of development with Telecom Operators, Netgem is successfully developing a new commercial line with Publishers, thus capitalising on its know-how to enrich the access to media”.