Netflix Losses


Emailed on July 19th, 2019 in The Friday Forward

Netflix reported earnings Wednesday night and the results were not great. The company saw its first major loss in US subscribers last quarter, and a mere 2.7 million paid customers added globally, nearly half of what was forecast.


As the US market becomes oversaturated with streaming services — with WarnerMedia, Disney, and Apple all launching streaming services — the only way to ensure growth is going outside the United States.


But the company is facing a number of problems that could affect their overall growth in the years to come. Netflix is losing a number of heavily watched licensed series, like Friends and The Office, to competitors WarnerMedia and NBC Universal respectively.


A sad possibility: It's becoming clearer and clearer that the convenience of Netflix is being  broken up by major networks pulling their top content to start their own streaming services. At some point, consumers will demand these be re-bundled. I imagine a bundle of these services will come out around $40-$100/mo depending on variety.


And just like that, we're back with our cable provider we so happily left for Netflix.

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Sean Steigerwald