Is this the end for Netflix?
As most investors have heard by now, Netflix’s second-quarter earnings reported on earlier this week showed a considerable plunge in new subscribers. The stock dropped more than 10% and the overall chatter online wasn’t great for the prototypal leader in streaming services.
The number of new subscribers for the quarter was projected to reach 5M, however 2.7M was the grand total—marking this a considerable miss on Netflix’s part.
While some investors believe this dip doesn’t indicate the future of the company, many are concerned that competition from the likes of Disney, Apple and HBO, marks the end of the road for Netflix.
There’s one more point to consider before coming to your conclusion. Tim Nollen of Macquarie Research stated in his interview with Deadline: Netflix has missed on its quarterly subscriber projections once a year for the past four years. He urged investors to stop treating the streaming giant as a “tech” company, and instead recognize it as a media company that relies on its own content.
Will the added competition just mean more volatility in subscribers for all streaming services?
What are your thoughts?