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Will Netflix's (NFLX) Weekly Release Trial Boost User Base?

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Netflix’s (NFLX - Free Report) two upcoming reality shows– The Circle and Too Hot to Handle– will have a weekly release schedule. The streaming giant plans to release the episodes over the course of a month instead of making all of them available at once.  

Markedly, episodes 1-4 of season 2 of The Circle will be available on Apr 14 followed by episodes 5-8 on Apr 21 and episodes 9-12 on Apr 28. The finale will be streamed on May 5. Moreover, new episodes of Too Hot to Handle will premiere on Wednesdays in June.

Netflix is well known for binge viewing. This, along with robust original content offerings of TV series, documentaries and feature films across various genres and languages, has bolstered viewership on its platform. Moreover, coronavirus-induced shelter-in-place practices have driven subscriber growth for the company.

Markedly, Netflix’s paid subscribers, globally, grew to 203.66 million, increasing 21.9% on a year-over-year basis, in fourth-quarter 2020, beating management’s expectation of 201.15 million paid subscribers.

Netflix’s experiment to release reality shows over a longer period of time is likely to boost the popularity of the shows as it will keep the buzz alive among the audience for some time. Gradual acceleration toward the climax instead of binge viewing works well for reality shows, as evident from the popularity of Netflix’s prior releases like The Great British Baking Show and Rhythm + Flow.
 

 

However, it is difficult to predict whether weekly release of shows will help Netflix edge past its competition in a saturating streaming market. Markedly, Walt Disney’s (DIS - Free Report) streaming service, Disney+, found success with the weekly release of The Mandalorian and WandaVision. Nevertheless, Netflix is likely to stick to its binge-viewing pattern for its popular shows like The Witcher.

Markedly, Netflix’s robust portfolio is expected to remain a game-changer despite intensifying competition from the likes of Disney+, Apple’s (AAPL - Free Report) Apple TV+, Amazon Prime Video, Comcast (CMCSA - Free Report) division NBCUniversal’s Peacock and AT&T’s HBO Max.

Notably, Netflix plans to release at least one new original film every week in 2021. The company’s releases for the first quarter of 2021 include season 3 of Cobra Kai, Lupin as well as To All the Boys I’ve Loved Before 3, the finale of the trilogy.

Moreover, Netflix's content portfolio includes Fate: The Winx Saga, Yes Day, Sky Rojo and Space Sweepers.

This Zacks Rank #3 (Hold) company also has a solid pipeline of regional content in 2021. Markedly, Netflix expects to end the first quarter of 2021 with 209.66 million paid subscribers globally, indicating growth of 14.7% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

 

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