Due to discussions around prolonged disruptions, delays and slowdowns in new subscribers and revenue growth, Netflix’s sentiment has dropped by 3%. According to GlobalData’s Company Filing Analytics database, negativity around delays in content releases also impacted the streaming service’s margins and revenue growth. Price increases were also discussed, along with higher churn rates.

In contrast, the leading data and analytics company found that Disney’s sentiment rose by 6% in Q2 2022 over Q1 2022 driven by positivity around subscription revenues and optimism around subscriber additions.

Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “In Q4 2021, GlobalData’s Company Filings Analytics database also found that Netflix was optimistic around its gaming experience and commented on a more direct experience for customers without advertisements or in-app monetization. The company mentioned ‘Mobile Games’ in its recent quarterly filing, while largely being neutral around the keyword. However, the addition of games to its service, don’t seem to be winning over customers, as highlighted by its subscriber loss mentions in its earnings call transcript.”

Pereira adds: “Disney is looking at rolling out Disney+ to newer markets across Europe and Africa, while also considering more price point offerings via ad tiers. Ads could be the way forward, and Netflix is also considering similar strategies; recent filings in 2022 also point at negativity around competition. If Netflix explores avenues via ads, it seems to be straying away from its original premium content strategy without ads. The mobile gaming sector could be a unique offering compared to Disney+, provided it finds a way to retain customers via newer premium content.”

GlobalData also expects Netflix to lose its dominance in the subscription video on demand (SVoD) market.

Charlotte Newton, Thematic Analyst at GlobalData, comments: “It is clear that we are now post-peak stream as life goes back to normal. Streaming services are either throwing money at the problem, chasing a dwindling number of subscribers, or (in Netflix’s case) cutting back on content spend, which was its USP. Streaming services need to adjust expectations, and improve their offerings to prevent further haemorrhaging of subscribers and to compete in an increasingly fragmented SVoD market.”