Liabilities have slightly decreased during the stimulus period, but the effect of pent-up demand has not only made it possible to spend all the accumulated cash, but also to take on additional debt.ĭebt service has become increasingly difficult. The reason is that households have accumulated their debts through mortgage demand and low-interest purchases of durable consumer goods. Although real household incomes will not fall to a large extent, disposable income will fall (income after all expenses, including liability payments). The strongest effect from rising commodity costs will be seen in the lower quantile. The whole world, including the USA, is experiencing unprecedented inflation growth, primarily caused by record-high energy prices and disrupted supply chains. Therefore, the battle for wallets in 2022 will only intensify, and the reasons are listed below. However, Netflix remains the undisputed leader. Now households can choose from around 10 different platforms. In the U.S., the market for streaming video on demand (movies on subscription) is highly competitive. Hedge Eye The battle for consumer and their wallets will intensify The growth of streaming services market also will be facilitated by the development of peripheral devices, such as TV consoles, where some services are already available as a pre-installed option. It has become part of everyday life in post-pandemic society. However, despite the normalization of social life, the habit of having subscription to streaming services has not changed. For instance, downloads of Netflix mobile app exceeded 1 million downloads per day. It experienced a significant acceleration in 2020, when the world was struck by the record rapid spread of COVID-19 and introduction of total social restrictions, such as quarantines and lockdowns. The global video streaming market is estimated to be worth $71 bln. The video streaming market will continue to grow despite the normalization of social life Consequently, we have decided to look into what the streaming video market is like and why Netflix remains an attractive company. We also believe that in the competition for subscribers, companies will start to reduce the cost of their services or expand their features without corresponding increase in subscription price following the decline in real household income, which will have dampening effect on business in the short term. We believe that battle for subscribers will continue in 2022 due to the need to meet increasing demand. remains very competitive, with players like Disney ( DIS), Apple ( AAPL) and so on coming in to replace permanent leader - Netflix, Inc.
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