Netflix suffers its first major loss of U.S. subscribers due to the recent price hikes.

Rose Prince

2019-08-14 10:31:00 Wed ET

Netflix suffers its first major loss of U.S. subscribers due to the recent price hikes. The company adds only 2.7 million new subscribers in 2019Q2 in stark contrast to 5 million new subscribers that stock analysts expect in the latest income statement. The disappointment shows an inevitably high price elasticity of demand for Netflix media services and thus causes the recent 11%-14% double-digit depreciation of Netflix shares.

This issue poses a major challenge to the current unsustainable business model as Netflix faces fierce competition from many media service and content providers such as Amazon, Apple, Disney, HBO, NBC, WarnerMedia, and YouTube. Netflix may lose valuable subscribers who can choose to switch to several other original content providers.

Specifically, WarnerMedia expects to confirm an exclusive core license for HBO to stream one of the most popular TV shows, Friends, in addition to Pretty Little Liars and The Fresh Prince of Bel Air. Also, NBC seeks to secure the exclusive license for streaming all 9 seasons of The Office. With 150+ million premium subscribers worldwide, Netflix needs to carefully mull over the next pivot for better monetization (such as online advertisement) to turn around the fundamental economic outlook.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Many successful business organizations develop their distinctive capabilities and unique value propositions for strategic reasons.

Jacob Miramar

2020-09-17 12:28:00 Thursday ET

Many successful business organizations develop their distinctive capabilities and unique value propositions for strategic reasons.

Many successful business organizations develop their distinctive capabilities and unique value propositions for strategic reasons. Paul Leinwand and Cesa

+See More

China continues to sell U.S. Treasury bonds amid Sino-U.S. trade truce uncertainty.

Chanel Holden

2019-08-05 13:30:00 Monday ET

China continues to sell U.S. Treasury bonds amid Sino-U.S. trade truce uncertainty.

China continues to sell U.S. Treasury bonds amid Sino-U.S. trade truce uncertainty. In mid-2019, China reduces its U.S. Treasury bond positions by $20.5 bil

+See More

Apple releases the new iOS 13 smartphone features.

John Fourier

2019-07-01 12:35:00 Monday ET

Apple releases the new iOS 13 smartphone features.

Apple releases the new iOS 13 smartphone features. These features include Dark Mode, Audio Share, Memoji, better privacy protection, smart photo collection,

+See More

The Economist delves into the modern perils of tech titans such as Apple, Amazon, Facebook, and Google.

Jacob Miramar

2018-01-12 07:37:00 Friday ET

The Economist delves into the modern perils of tech titans such as Apple, Amazon, Facebook, and Google.

The Economist delves into the modern perils of tech titans such as Apple, Amazon, Facebook, and Google. These key tech titans often receive plaudits for mak

+See More

Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2026.

Olivia London

2026-02-02 12:30:00 Monday ET

Our proprietary alpha investment model outperforms most stock market indexes from 2017 to 2026.

With U.S. fintech patent approval, accreditation, and protection for 20 years, our proprietary alpha investment model outperforms most stock market indexes

+See More

Tony Robbins summarizes several personal finance and investment lessons for the typical layperson.

Charlene Vos

2017-12-21 12:45:00 Thursday ET

Tony Robbins summarizes several personal finance and investment lessons for the typical layperson.

Tony Robbins summarizes several personal finance and investment lessons for the typical layperson: We cannot beat the stock market very often, so it w

+See More