Streaming media giant Netflix's performance fell in the first quarter, and subscribers decreased in a single quarter for the first time in a decade. In addition to the growth of paying users in the Asia Pacific market, paying users in other regions of Netflix decreased. The UCAN region (the United States and Canada) with the largest number of users and the strongest payment ability has reduced the number of subscribers by 640000. Netflix raised service prices in the United States and Canada in the first quarter, and the three-level membership fee system for U.S. users increased by $1-2 respectively. As the world's largest streaming media platform, Netflix faces fierce competition on the content side from Disney +, Amazon primevideo and other dramas with a large number of IP. The cost of content is high, the number of paying users has regressed, and the company's labeled "ad free" user experience may be rewritten. High quality going to sea is still the main line of investment, paying attention to the internationalization process of game listed companies. It is recommended to pay attention to G-Bits Network Technology(Xiamen)Co.Ltd(603444) (wonderful planning of leisure placement category + business operation of independent games), heart company (boutique game community + social potential of content), Wuhu 37 Interactive Entertainment Network Technology Group Co.Ltd(002555) (layout at sea is in the harvest period), Perfect World Co.Ltd(002624) (deep engine accumulation + Category breakthrough audience expansion). Social networking is the focus of the Internet giant with traffic in hand to attack the meta universe. There are also breakthrough opportunities for vertical needs such as acquaintance social networking, game social networking and drying social networking. It is recommended to pay attention to Inmyshow Digital Technology (Group) Co.Ltd(600556) (mature KOL marketing model + social communication gene + 3D social application rainbow universe), Visual China Group Co.Ltd(000681) (picture copyright moat + digital collection distribution platform).
Risk warning: covid-19 epidemic prevention and control; Required consumer price; China's regulatory policy; Overseas Internet market policy.
