N(etfl)ixed? 🎥

Paul Sakuma Photography

Paul Sakuma Photography

A steep decline

Following the second fiscal quarter, Netflix’s stock dropped 12 percent due to membership cancellations and subscriber overestimations. Netflix attributed the decline to a number of reasons, such as weak content and subscription price increases.  

Will it fall further?

In addition to drops in stock and subscribers, Netflix’s competitors are strategizing to steal the streaming giant's clients. Has Netflix already won the war, or do recent developments put it in trouble?


NETFLIX IS IN TROUBLE:

AP: Netflix’s 2Q dud rattles investors as competition heats up

Yahoo: Netflix Plunges After Biggest Stumble Since DVD-by-Mail Era

Those who believe that Netflix is in trouble reference a number of factors: that this decline is Netflix’s largest ever and that competition will charge significantly less. However, they specifically point out that some of its most popular content will be pulled, such as those from Disney, Friends, and The Office

NETFLIX IS FINE:

The Motley Fool: Netflix Passes 150 Million Global Subscribers

CNBC: Netflix has already won the streaming wars, says Barry Diller

Those who believe that Netflix is fine acknowledge the stock’s dip as well as the competition, but they emphasize that its 150 million subscribers puts the streaming service so far ahead of competition that it’s impossible for competitors to catch up. 


Where's the common ground?

Both sources acknowledge that Netflix holds a significant lead over other streaming services. Those that think Netflix is in trouble concede that recent content release, like Stranger Things, in the third and fourth quarters, should give the service a nice boost. However, both sides anticipate Disney’s upcoming streaming service as a development to watch.

But until 2021:

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