The rise of Netflix streaming already seemed unstoppable before Covid, but with the arrival of the pandemic, the global audiovisual market has polarized to the extreme. As emerges from a report by the Mediobanca Research Area on the Italian and global Media & Entertainment sector, in the first 9 months of 2020 the main operators international radio and TV stations averaged a drop in turnover of 9,9% (the only positive sign for Fox: +8,1%). In the same period, however, Netflix continued to gain ground with a + 24,9 %.
On the front of the Net income, the difference is even more impressive: -76,3% for traditional media compared to the +73,4% recorded by the queen of streaming.
as to profitability, again between January and September of last year, Netflix recorded an ebit margin of 19,8%, up 5,2 percentage points on an annual basis (the highest increase among all international operators).
However, it would be wrong to believe that this result is only the result of the various lockdowns imposed in the last year. Already in the period 2015-2019Indeed, Netflix had registered a compound annual growth rate (Cagr) ten times higher compared to the average of the other traditional broadcasters: +31,3 against +3,3%. To get an idea of how wide the difference is, just think that in second place in the global ranking for this statistic is +8,6% recorded by Fox.
Netflix, Mediobanca experts write, is “a company that has been able to reinvent itself in a prophetic way”: founded in 1997 as “the Amazon of DVDs”, the turning point of streaming began only in 2007 and from 2013 it made its debut in content production.
Unfortunately, the analysts underline, details of Netflix's Italian activities, which belong to the Netflix International holding company, are not available.
