DUBAI: Global streaming giant Netflix Inc. on Tuesday reported losing subscribers for the first time in more than a decade and predicted more contraction in the second quarter, a rare miss for a company that has been a reliable growth engine for investors.
Netflix lost 200,000 subscribers in its first quarter, falling well short of its modest predictions that it would add 2.5 million subscribers. Its decision in early March to suspend service in Russia after it invaded Ukraine resulted in the loss of 700,000 members. The company’s stock plunged 24 percent in after-market trading.
Netflix’s poor results pummeled other video streaming-related stocks, with Roku dropping over 6 percent, Walt Disney falling almost 4 percent and Warner Bros Discovery down 2 percent.
Netflix, which currently has 221.6 million subscribers, last reported a loss in customers in October 2011. Netflix offered a gloomy prediction for the spring quarter, forecasting it would lose 2 million subscribers, despite the return of such hotly anticipated series as “Stranger Things” and “Ozark” and the debut of the film “The Grey Man,” starring Chris Evans and Ryan Gosling. Wall Street targeted 227 million for the second quarter, according to Refinitiv data.
First-quarter revenue grew 10 percent to $7.87 billion, slightly below Wall Street’s forecasts of $7.93 billion. It reported per-share net earnings of $3.53.
“The large number of households sharing accounts — combined with competition, is creating revenue growth headwinds. The big COVID boost to streaming obscured the picture until recently,” Netflix said, explaining the difficulties of signing up new customers.
The world’s dominant streaming service was expected to report slowing growth, amid intense competition from established rivals like Amazon.com, traditional media companies such as the Walt Disney and the newly formed Warner Bros Discovery Inc. and cash-flush newcomers like Apple Inc. .
Streaming services spent $50 billion on new content last year, in a bid to attract or retain subscribers, according to researcher Ampere Analysis. That’s a 50 percent increase from 2019, when many of the newer streaming services launched, signaling the quick escalation of the so-called “streaming wars.”
As growth slows in mature markets like the United States, Netflix is increasingly focused on other parts of the world and investing in local language content.
“While hundreds of millions of homes pay for Netflix, well over half of the world’s broadband homes don’t yet — representing huge future growth potential,” the company said in a statement.
Netflix has been able to increase subscription prices in the United States, the United Kingdom and Ireland, to fund content production and growth in other parts of the world, such as Asia, noted Wedbush analyst Michael Pachter. However, subscription pries in these growth markets are lower.
Benchmark analyst Matthew Harrigan warned that the uncertain global economy “is apt to emerge as an albatross” for member growth and Netflix’s ability to continue raising prices as competition intensifies.
Streaming services are not the only form of entertainment vying for consumers’ time. The latest Digital Media Trends survey from Deloitte, released in late March, revealed that Generation Z, those consumers ages 14 to 25, spend more time playing games than watching movies or television series at home, or even listening to music.
The majority of Gen Z and Millennial consumers polled said they spend more time watching user-created videos like those on TikTok and YouTube than watching films or shows on a streaming service.
Netflix, recognizing the shift in consumer entertainment habits, has begun to invest in gaming, but it does not yet contribute materially to the company’s revenue.
Netflix subscribers fall for first time in a decade, shares plunge 24 percent
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Netflix subscribers fall for first time in a decade, shares plunge 24 percent
- Netflix lost 200,000 subscribers in its first quarter, falling well short of its modest predictions that it would add 2.5 million subscribers
- Its decision in early March to suspend service in Russia after it invaded Ukraine resulted in the loss of 700,000 members
OpenAI’s ChatGPT faces massive outage with thousands of users impacted
BENGALURU, India: Microsoft-backed OpenAI said on Friday night it is facing an issue that has resulted in its popular chatbot ChatGPT being unavailable.
The company said in a statement on its website that it was investigating the issue and working to restore functionality as soon as possible.
Over 19,403 users had been impacted by the outage as of 7:13 p.m. ET (0013 GMT on Saturday), according to outage tracking website Downdetector.com.
OpenAI did not immediately responded to a request for comment.
Athar Festival hosts 4 academies to train next generation of creative talent in Saudi
- 2 academies designed for students, 2 for industry professionals
- Focus on creativity, marketing
DUBAI: The second edition of the Athar Saudi Festival of Creativity opened on Tuesday at the Crowne Plaza RDC in Riyadh.
Hosted by the UAE-based Motivate Media Group and communications consultancy TRACCS, the event featured 100 regional and international speakers and several training initiatives.
One such initiative was the Young Talent Academies, which boasted four academies aiming to foster talent in the creative and marketing fields in Saudi Arabia.
The four academies were the Student Creative Academy, in partnership with regional advertising group Middle East Communications Network; the Student Marketers Academy, in partnership with Arabic entertainment firm UTURN; and the NextGen Creative Academy and NextGen Marketing Academy, in partnership with the Saudi Tourism Authority.
The first two were tailored for students, while the latter two were for young professionals already working in the industry.
The Young Talent Academies were a key component of the festival and are dedicated to “nurturing the next generation of creatives that will shape the future of Saudi Arabia,” said Ian Fairservice, chairman of Athar Festival and managing partner of Motivate Media Group.
He told Arab News: “The remarkable interest received is a clear indication of ambitions being aligned, and the lineup of immersive workshops and mentorship and networking opportunities at the festival promised to equip participants with invaluable insights and transformative career lessons.”
The Student Creative Academy, in partnership with MCN, brought together experts from across its agencies, which included FP7 McCann, MullenLowe MENA, UM, Initiative MENAT, MRM, Jack Morton, and Weber Shandwick.
Designed to “equip the next generation of creatives with skills and insights, while also instilling the fun of being a creative,” the academy provided participants “with a curated program of talks, mentorships, and creative brief challenges judged by industry leaders, culminating in an awards ceremony,” Ricarda Ruecker, chief talent officer of MCN in the Middle East, North Africa and Turkiye, told Arab News.
UTURN’s Student Marketers Academy’s participants consisted of 60 percent female and 40 percent male students representing universities including Imam Mohammad Ibn Saud Islamic University, Princess Nourah Bint Abdulrahman University, University of Business and Technology, King Saud University, and King Fahd University of Petroleum and Minerals.
Led by Salwa Bankhar, Webedia Saudi Arabia’s business director, the academy featured eight speakers with expertise in content creation, marketing skills, storytelling, networking strategies and self-promotion.
Both MCN and UTURN are committed to developing local talent in the Kingdom and the academies were part of these efforts.
The Athar Saudi Festival of Creativity plays “an active role in shaping up the creative and marketing industry in Saudi Arabia” and provides “much-needed visibility and exposure to local Saudi talent,” said George Maktabi, CEO of UTURN’s parent company Webedia Group.
“Students take a sponge-like attitude to learning, but also give back candid observations and raw perceptions that puts everyone on a different learning curve,” he told Arab News.
The company is “established around young local talent, and by structure it acts as a hub for Saudi talent,” he added.
For MCN, the academy is of “strategic importance” to the company and a “natural extension” of the initiatives it has in place to foster talent development, Ruecker said.
Earlier this year MCN launched a six-month graduate program in Saudi Arabia to attract and train young local talent. It will launch a second edition in February 2025.
Although MCN and UTURN did not directly offer jobs or internships to participants, both companies said they have various initiatives in place for talent development.
Maktabi said: “UTURN is continuously headhunting talent and young marketers.
“Recruitment is of course competitive-based, and it is important to maintain an open call for talents to ensure open and equal access to all talents.”
The Student Marketers Academy is aimed at guiding students and empowering them “to pursue new opportunities more proactively, and UTURN is always approachable,” Maktabi added.
Ruecker said that MCN already had internship programs across the region and was “committed to inspiring students at the Student Creative Academy to pursue rewarding paths with us, whether through our graduate program or full-time roles across MCN’s agencies.”
The festival took place on Nov. 5-6 with the academies featuring from Nov. 3-6.
Taliban shut down Radio Zhman over alleged music broadcast
- Officials closed the radio station after warnings about broadcasting background music during programs
- Afghanistan Journalists Center says closure is a ‘significant infringement on the fundamental rights of free media’
LONDON: Taliban authorities have shut down Radio Zhman TV in Afghanistan’s southeastern Khost province, accusing the station of using background music in its broadcasts, a violation of the Taliban’s media policies since their takeover of the country in August 2021.
The Afghanistan Journalists Center condemned the closure on Wednesday, calling it a “significant infringement on the fundamental rights of free media” and warned of potential repercussions if restrictions on local media continue to escalate.
According to AFJC, Afghanistan’s media law stipulates that journalists and media organizations should be able to conduct their professional duties without undue restrictions, and that authorities have a responsibility to support media freedoms.
US-based Amu TV reported that the decision was made during a commission meeting at Khost’s Directorate of Information and Culture, which included representatives from the Ministry of Vice and Virtue, local intelligence, police, and information officials.
The commission determined that the station’s use of light background music in a social issues program was a breach of the Taliban’s strict media policies.
The Taliban’s Ministry of Vice and Virtue, which enforces its interpretation of Islamic law, had previously issued warnings to broadcasters about playing music, which the group deems inappropriate.
Radio Zhman, established in 2017, broadcasts a mix of political, social, cultural and educational programming from 7:30 a.m. to 10 p.m., reaching listeners in Khost and parts of neighboring Paktia province.
It is the second local media outlet to be shut down in Khost recently. Gharghasht Radio was closed on Oct. 31 but allowed to resume operations three days later on the condition that it refrains from broadcasting any music.
Dubai ‘most reputable city’ as Middle East shows strong progress in Brand Finance Global City Index
- Emirati city moves up 4 places to 5th in overall global rankings, based on all measured attributes, behind London, New York, Paris, and Tokyo
- Riyadh and Jeddah climb 4 and 6 places respectively to rank 75th and 79th on the overall global list
LONDON: Dubai claimed the title of most reputable city in the world in the 2024 Brand Finance Global City Index, which revealed notable improvements across the region.
The brand valuation and strategy consultancy firm’s second annual global survey on city perceptions, the results of which were released on Thursday, placed Dubai fifth in the overall global rankings, which are based on all measured attributes, behind London, New York, Paris and Tokyo.
Last year, the Emirati city ranked ninth. This time, the survey found it had made substantial gains in terms of investment appeal and reputation, bolstered by strong governance and strategic investments.
Riyadh and Jeddah also improved, climbing four and six places respectively to rank 75th and 79th on the overall global list.
Riyadh enjoyed some impressive gains in specific attributes, moving up 37 places in the rankings in recognition of its high-profile sports teams and clubs, 24 places for its private schools, and 20 places for its shopping, dining and nightlife options, making it one of the fastest-growing cities by these measures.
Andrew Campbell, managing director of Brand Finance Middle East, attributed the rapid improvements in the regional rankings, particularly the success of Dubai, to strategic investments by governments in infrastructure, tourism and the business sector.
“The substantial improvements in Dubai’s consideration metrics further highlight the city’s increasing allure as a premier destination for visitors, residents, businesses and global investors,” he said.
Dubai’s appeal in terms of business and innovation, along with a stable economy and favorable corporate tax policies, were credited with moving it four spots higher in the overall rankings than a year ago. It also achieved significant improvements in its rankings for local working (from 16th to 8th) and remote working (from 24th to 4th).
The index is based on a survey of more than 15,000 respondents. It measures factors related to familiarity, reputation and consideration to assess how desirable a city is viewed for living, working, studying, visiting, retiring and investing.
Abu Dhabi ranked 30th on the overall global list, the same as last year, but improved in terms of science, technology and economic appeal.
Other cities in the Middle East and North Africa that appear on the list include Cairo (63rd place in the overall rankings), Doha (69th), Casablanca (73rd) and Tel Aviv (83rd), which dropped six places amid ongoing conflicts.
Saudi stories pique audience interest, says Bloomberg Media MD
- Visiting the Athar Festival of Creativity in Riyadh, Amit Nayak told Arab News: “We’ve seen a real appetite from our global audiences for content from here”
RIYADH: Stories and articles about Saudi Arabia and the region are among the most widely read by audiences, according to Bloomberg Media’s managing director in the Middle East and Africa.
Visiting the Athar Festival of Creativity in Riyadh, Amit Nayak told Arab News: “We’ve seen a real appetite from our global audiences for content from here.”
He said that with such a large and diverse team based in the Middle East, Bloomberg Media was able to bring local insights and perspectives to provide content based on what audiences wanted.
“We remain focused on deeply understanding our Middle Eastern audience, fostering direct relationships, and delivering trusted news and insights tailored to their needs,” he said.
“We work with leading entities across the region, such as Saudi Tourism Authority and Red Sea Global, using custom content across different platforms to help tell their stories to regional and global audiences.”
The use of smart technology has been big part of Bloomberg’s strategy for over a decade, with The Bulletin being a predominant feature on the app. Launched by Bloomberg’s Media Innovation Lab in 2018, it provides single-sentence summaries of the top three stories.
“We leverage first-party subscriber data through our AI-powered Audience Accelerator platform,” added Nayak. “This allows us to precisely target key demographics to inform machine learning models that predict the population of users on the site, enhancing campaign performance and building brand credibility.”
In 2022, Bloomberg Media Studios opened a regional studio in Dubai and earlier this year launched “Bloomberg Horizons: Middle East & Africa,” a flagship morning program.
Bloomberg News also launched the Mideast Money newsletter, which focuses on “the intersection of wealth and power, and the impact of regional sovereign investors and dealmakers in global finance.”
Evolving as a commercial team that, 10 years ago, predominantly sold advertising, Nayak said that as clients became more sophisticated and keener to reach global audiences, Bloomberg Middle East was fostering internal talent to better collaborate with them.
“We were well placed because we have invested heavily in our teams on the ground here — whether that’s expanding sales, building a client marketing team, or hosting events on the ground in the region,” he said.
