The rise of Netflix is showing the first signs of losing momentum globally, but not in Quebec, where the platform has continued to experience more than enviable growth over the past year. The Californian giant still outrageously dominates its local competitors, such as ICI Tou.tv and Club illico, who nevertheless remain aware of fighting against Goliath.
Some 57% of Quebecers today say they have a Netflix package, 5% more than last year, according to a survey conducted online by the Academy of Digital Transformation at Laval University.
This new increase is part of an even broader trend, as for the first time this year, more Quebecers are subscribing to an online viewing service than to cable. However, local platforms benefit much less from this change in listening habits.
Hard to stand out
Also according to the same study, 16% of Quebecers are members of Club illico and 9% are subscribers to the ICI Tou.tv extra, exactly the same percentages as in 2020. Crave, Bell’s pay platform , for its part, rallies 8% of Quebecers, a slight decrease compared to last year. “Good news for the Videotron people is that illico is ahead of ICI Tou.tv Extra, but also ahead of Crave, Bell’s big offensive. Bell is in the dust. Bell is still weak in the sector. Bell people still have important offensives to make, ”notes Bruno Guglielminetti, spokesperson for the Academy of Digital Transformation, pointing out the weakness of French-language content on Crave.
Bell Media did not respond to our interview request, and Quebecor Content indicated by email that it was satisfied with Club illico’s results. Without having been able to take note of the figures of the study, Radio-Canada for its part made a point of specifying that Tou.tv knew a very good year.
“Of course, in a survey of the general population, you have to be careful, because these are still small percentages, so even if there is an increase, it will not appear much in the overall picture. In fact, Tou.tv is doing very well against a giant like Netflix. Between December 2020 and December 2021, our number of subscribers increased by 20%,” says Christiane Asselin, senior director of the platform.
In interview at Duty, Mme Asselin did not hide that Tou.tv’s strategy is essentially based on exclusive Quebec content, the Achilles’ heel of Netflix and other American platforms, such as Amazon Prime and Disney+. The local offer probably attracts a more mature audience. Data from the Digital Transformation Academy shows that 45-54 year olds are the age group that subscribes the most to ICI Tou.tv’s extra, while Netflix still has a much younger audience. In Quebec, 81% of people aged 18 to 24 say they subscribe to Netflix.
Radio-Canada recognizes the hegemony of the multinational among the youngest, but the public broadcaster is not absolutely seeking to gain market share in this segment of the population. We are categorically closing the door to reality TV, which nevertheless has very good ratings on other platforms. “All audiences are important, and we prefer to offer programs for the general public, rather than specifically targeting 17-24 year olds. We tell ourselves that if we make programs that reach a million people, it will inevitably attract young people too, ”reasoned Christiane Asselin, whose priority is now to keep new subscribers acquired during the pandemic.
Black week for Netflix
The confinements have indeed been very profitable for the broadcasting platforms, whatever they are. After a record surge in the first year of the pandemic, Netflix continues to enjoy subscriber growth across the world, but it fell slightly short of expectations in the last quarter.
It was enough for the action to plummet. The company has lost almost 30% of its stock market value since last week.
These figures should be put into perspective, knowing that the markets have experienced a lot of volatility in recent days. But for some, there is still reason to wonder if Netflix has not reached a plateau.
“I’m not really worried about Netflix,” replies tit for tat Patrick White, professor at UQAM’s School of Media. Even if the competition is tougher since the arrival of Disney+ and Amazon Prime, he is convinced that Netflix still has growth potential thanks to its recent foray into the video game industry. To continue to grow, the American company is also making great efforts to break into other markets where it had little presence until now, such as the Middle East and India.
I have the impression that people are going to prefer to unsubscribe from the smaller platforms, rather than from Netflix. The Netflix catalog remains much larger.
“So far, Netflix has disappointed its shareholders more than its subscribers,” continues Patrick White, referring to the success of Squid Game this fall and to the many arrivals that are expected for 2022.
Admittedly, the offer remains abundant, and subscribers are likely to still find their account, but Netflix still drew some criticism last week when the company once again increased its prices. The Standard plan now costs $16.49 per month, while the Premium plan jumps to $20.99, increases of $1 and $2 respectively that are aimed at “being able to continue to offer a wide variety of entertainment options”. of quality”, defends the multinational.
In a context where the number of platforms has increased, this increase may lead consumers to have to make choices. And it will probably not be Netflix who will suffer first, predicts Bruno Guglielminetti.
“I have the impression that people will prefer to unsubscribe from the smaller platforms, like Crave or Tou.tv, rather than from Netflix. The Netflix catalog remains much larger. Usually people have the budget for Netflix and another platform,” he points out.
With Stephane Baillargeon