Saturday 05/April/2025 – 03:00 AM
Since 2019, Netflix is undergoing DVA (DST) in several European countries such as the United Kingdom, France, and Spain, as part of the efforts of these countries to organize the work of major technology companies, but the situation has increased recently, after indications of the possibility of imposing new customs definitions within the repercussions of the trade war between Europe and the United States, which raised concerns about the future of Netflix in European markets.
The Wall Street analyst warns of the risk of the growth of the Netflix platform
Laurent Yun, one of the prominent analysts at Bernstein, addressed in his report the potential effects of these commercial tensions on Netflix’s performance, and explained that the company, despite its previous experience in dealing with international taxes, but the expansion of customs duties may pose a direct threat to its growth in the European market, according to the Spanish newspaper Marca.
He pointed out that Netflix may be able to prove its feasibility to European governments by highlighting its contributions to the local economy, such as its investments in the local content and providing them with work opportunities on a large scale within the continent, but despite that, the question remains: Are European governments turning a blind eye to imposing these drawings or will they insist on their position?
The damage may affect subscribers more than the company
One of the most prominent concerns that the report referred to is the indirect impact of customs tariffs, which is the high costs of subscription to users. In major markets such as Germany, France and the United Kingdom, Netflix may have to increase their prices to compensate for the financial burden, which may lead to a decline in the number of subscribers and increased rates of cancellation of contributions.
The future of Netflix in Europe
It is estimated that the number of Netflix subscribers in Europe amounted to 101 million subscribers by 2024, which makes it an irreplaceable market, and with the possibility of imposing new customs definitions, the company may face a slowdown in the growth of its user base, and difficulties in raising prices without negatively affecting the loyalty of the subscribers, and Yoon warns that the worst scenario can witness a 10% decrease in the company’s profits during a year 2026.
It is expected that the Netflix platform will issue its profit report in April 2025, which is expected to shed light on the extent of the company being affected by new commercial policies, and explains to any extent that its growth may slow in Europe, and while Netflix still retains its position as the most prominent video service provider (SVD) in Europe, political and financial pressures may force it to reconsider its strategies within The continent.
