Netflix Following Amazon-Style Subscriber Tactics? Tests Streaming Deal With France's Carrefour To Boost Customer Base
Portfolio Pulse from Nabaparna Bhattacharya
Netflix, Inc. (NASDAQ:NFLX) is testing a new subscription model in collaboration with French retailer Carrefour S.A. (OTC:CRERF), offering a discounted Netflix subscription with benefits at Carrefour stores in Bordeaux and Rouen. The strategy, similar to Amazon.com's (NASDAQ:AMZN) approach with Amazon Prime Video, aims to increase Netflix's customer base for its ad-supported plan. Netflix India has also reported a revenue increase of 24% and a net profit rise of 75% in FY23. NFLX shares dropped by 0.74% to $488.53 recently.
January 16, 2024 | 3:40 pm
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NEUTRAL IMPACT
Amazon's Prime Video strategy, which bundles streaming with other services, is being emulated by Netflix in its partnership with Carrefour, indicating the effectiveness of Amazon's approach.
While the news is about Netflix's strategy, it indirectly acknowledges the success of Amazon's approach. This could be seen as a positive reflection on Amazon's business model, but the direct impact on AMZN stock is likely to be neutral in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Carrefour's trial with Netflix to offer a bundled subscription service could enhance customer loyalty and increase store traffic if the trial is successful and extended nationwide in France.
Carrefour's involvement in the Netflix subscription bundle could lead to increased customer engagement and sales, especially if the trial is successful and the offer is extended nationwide. This could have a positive short-term impact on Carrefour's stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Netflix's new partnership with Carrefour to offer a bundled subscription service in France could attract more customers to its ad-supported plan, potentially increasing its subscriber base and revenue.
The collaboration with Carrefour is likely to have a positive impact on Netflix's subscriber numbers and revenue in the short term, as it offers additional value to customers. The success of similar strategies by Amazon suggests potential for positive reception.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90