Hello! Europe just had its largest auto show of the year, but out-of-towners nabbed the spotlight. China’s EV giants like BYD, Xpeng, and Leapmoter showed off new models that turned heads.
In today’s big story, Netflix’s earnings report comes as Wall Street wonders if the king of streaming can keep its crown.
What’s on deck:
But first, skip intro.
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Netflix won the streaming crown. Now, it has to keep it.
The gap between Netflix and its fellow streamers is more of a chasm these days. (I’m not exaggerating. Just look at this chart comparing Netflix’s stock price with its rivals.)
But life at the top just means the expectations are that much higher. Business Insider’s Lucia Moses outlined investors’ key questions about Netflix ahead of its third-quarter earnings call this afternoon.
One thing we do know is the subscription gravy train is slowing down. After enjoying a bump in subscribers from its password-sharing crackdown, executives have telegraphed a year-over-year drop in net additions for Q3.
But Netflix has other levers to pull for growth.
Games are one interesting avenue the streamer is pursuing. It’s unclear if the investment is paying off, but new games president Alain Tascan recently shook things up by bringing in a former Epic Games executive and cutting some staff.
Netflix’s other options range from straightforward (raising subscription prices) to complex (creating events tied to popular shows).
We’ll get a preview of one new growth opportunity for Netflix this quarter.
The NFL is coming to the streamer this Christmas, with Netflix showing two games on the holiday. It’s part of a three-year deal it inked with the NFL, joining rival streamers in buying the rights to show America’s new favorite pastime.
Football games can come with an initial boost in users — Peacock reportedly nabbed 2.8 million subscribers for its NFL playoff game last season — but they don’t always stick around, as BI’s Peter Kafka has previously covered.
There’s also a touch of reputational risk among fans who complain about needing to subscribe to yet another streamer to watch their beloved football.
The NFL isn’t really about adding more subscribers for Netflix, though. The games, along with its $5 billion pro wrestling deal, are about building out its ads business.
Netflix has already tested the waters with live events with varying degrees of success. (Remember the “Love Is Blind” reunion debacle?)
But games featuring the league’s biggest stars (Patrick Mahomes, reigning MVP Lamar Jackson) meant to help the NFL overtake a holiday dominated by the NBA mean the stakes are higher than ever.
Then again, Netflix is used to the spotlight.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Milan Sehmbi, fellow, in London. Amanda Yen, fellow, in New York.
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