Netflix stock drop with subscriber rates
Netflix’s video streaming service suffered a huge slowdown in growth this spring season. Despite forecasting 5 million subscribers, the streaming service only picked up 2.7 million worldwide subscribers for the April-June period. This also included a decline in U.S. subscribers, sending Netflix shares down 12 percent.
However, Netflix hopes to pick things back up this summer, projecting that it will a million subscribers from July through September. Much of the optimism comes from the recent release and massive popularity of the new season of “Stranger Things,” whose third season already garnered a record viewership after its July 4 release.
However, it’s still going to be an uphill battle for Netflix because Walt Disney Co. and Apple plan to launch their own streaming channels. AT&T will also join the bandwagon next year with HBO Max, and NBC is also expanding into video streaming.
As more and more companies plan on releasing their own streaming services, consumers are becoming dizzy with what to do. This begs the question about whether Netflix will be able to maintain the rate of subscriber growth, especially with so much competition entering the arena.
Revenue wise, Netflix could make more money if it were to sell ads, but the company’s management was firm in stating that the service will continue to remain commercial-free. As of right now, more money is going towards the development of more original shows to replace some of the programmings that it will be going back to Disney, AT&T, and NBC.
-
Shareholders have accused Musk of enriching himself to the company’s detriment. In the midst of his ongoing revamp of...
-
Without pandemic-era loan accommodation, borrowers are falling behind. During the height of the COVID-19 pandemic, numerous aid and accommodation...
-
As Twitter changes hands, policies change as well. As of last Friday, social platform Twitter is officially the property...
-
Remote workers have brought in a tidy sum for several major carriers. While the COVID-19 pandemic has reached a...
-
The CPI rose another 0.4% in September. For the past several months, the United States Federal Reserve has been...
-
Musk appears to be backing down from his legal threats. For the last several months, Tesla CEO Elon Musk...
-
Amazon is looking to start the holiday shopping season even earlier this year. Typically, online retail giant Amazon holds...
-
Home Depot still maintains a healthy customer base despite economic concerns. Ongoing concerns of inflation have done a number...
-
A railway strike would severely impact the US economy. This week, representatives of the National Railway Labor Conference and...
-
Customers have been tipping less generously as pandemic restrictions relax. At the height of the COVID-19 pandemic, when many...
-
After years of exclusivity, Peloton is finally allowing third-party sales. Since it first launched as a company, exercise device...
-
Uber was first on the chopping block as SoftBank recoups losses. Recently, Japanese conglomerate SoftBank suffered a major loss...