Scene from Netflix’s “Squid Game”
You may have seen every American “squid game” you know, but the show’s popularity has yet to generate new Netflix subscribers in the United States.
With 122 million Netflix subscribers watching at least two minutes of popular South Korean dramas, Netflix revealed in a letter to its shareholders on Tuesday. That’s exactly two-thirds of the company’s 213 million customers worldwide.
But with Netflix gaining 4.4 million net subscribers in the third quarter, the average analyst estimates that the growth did not come from the top 1.5 million, the United States or Canada. Netflix added just 70,000 users from the region this quarter.
While it’s possible Netflix could add more American or Canadian subscribers to “Squid Games” in the fourth quarter, which began Oct. 1, the company hasn’t changed its global forecast for the period to 8.5 million.
It is becoming clear that the growth of Netflix has stalled in the United States and Canada. Netflix has added less than one million subscribers to the region in the last 12 months. That’s why Netflix has started doubling down on video games. It will be interesting to see if Netflix does something amazing next month to boost growth in the United States and Canada, or if it is satisfied with its growth plateau in the region as long as it is still charging internationally.
The company’s 74 million U.S. and Canadian subscribers provide a real ceiling for Netflix’s streaming competition. Netflix still dominates new streaming services for Disney +, Hulu, AT&T’s HBO Max, NBC Universal’s Peacock and other, overall customers. Cowen & Co. The results of the survey released earlier this month in a note to clients showed that 25% of respondents said they used Netflix more than any other video service – including standard cable and broadcast TV. That dwarfs other subscription streaming services. Amazon Prime Video had the next highest 7.3%.
If “squid games” can’t bring in millions of new customers, it’s worth wondering if any new content can actually move the index to this region.
Disclosure: Comcast is the parent company of both NBC Universal CNBC and Peacock Streaming Services.