Filmin could be for sale. As reported by ‘Expansión’ (we have contacted those responsible for the platform, but so far we have not received a response), the Nazca Capital fund has hired the Arcano bank to coordinate the sale of the platform specialized in author and cult cinema. It is an operation with a value of about 50 million euros and that could interest giants such as Telefónica and Amazon. But… why? What does Filmin have to spark this interest?
Stimulating figures. If we look at the platform’s numbers we can detect sustained growth, but still very far from the market giants, since Filmin only has a market share of between 5% and 10%. Some of its figures:
- 22.6 million euros invoiced in 2023 (13.6% more than in 2022).
- 1.5 million euros of profit (327% more than in 2022).
The truth is that the accounts show excellent numbers: in August of last year, Filmin announced that in 2023 it had increased its net profit by 327%, with an increase in income of 13.6%. Its turnover was 22.6 million euros. This is an improvement that has become evident since the entry of Nazca Capital and Seaya Ventures into the business in 2020, which opted for internationalization and strengthening the business in Spain and Portugal.
Good profitability. In 2023, the platform’s profitability, as it announced, was 6.64%, which is in line with competitors such as Netflix. Of course, the difference in figures in terms of profits and number of subscribers is abysmal, but they make it clear that Filmin is a platform in good health, something that competitors that are sustained only by capital injections from from entertainment multinationals, like Paramount+, who are forced to compete with giants like Disney or Amazon just because streaming is “the place to be” now.
First reason: bad environment. This leaves us with two possible reasons for Netflix to sell. On the one hand, the tremendous uncertainty of the sector, which is not experiencing its best moments: just a few weeks ago we commented that the economy of the streaming had stagnated. The signals, measures that all platforms are taking, are clear (reduction of budgets for new content, increase in rates, prohibition of sharing accounts…). Staying in business, as analyst Daniel Parris explained, requires a muscle that is not available to everyone. Netflix has prevailed over its competitors with a checkbook, and if Disney and Amazon stand up to it, it is because they can afford the same strategy. Filmin may have realized that the more time she spends in that shark pool, the more likely she is to come out scalded.
Second reason: Filmin stands out. Although its income pales in comparison to giants like Netflix, Filmin has an enviable image. Its programming for a wide niche of film buffs and the curious, carefully selected and with an emphasis on filmographies outside of Hollywood and classic cinema that is often left out in the catalogs of other platforms, makes it stand out. In the era of the algorithm and the highest common denominator, Filmin’s “hand-selected” programming, and despite this, rich and varied like few others, turns the platform into an attractive dish that others like Amazon or Movistar might want to absorb, willing to incorporate it into their thematic channels.
Persistent problems. If one major Since Amazon buys Filmin and does not touch its catalog, stripping it of its identity (something that the platform, between the lines, has assured will not happen), it can provide value in the form of arrangements that Filmin needs. Its subscribers have been protesting for years about the low quality of many of its subtitles, as well as the irregular quality of some of the copies they have in their catalogue, coming especially from distributors with dubious commercial tactics in the world of physical publishing. These are aspects that a budgetary injection and the obligation to be on par in technical terms with the competition can improve Filmin’s already splendid offering.
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