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

Federal Reserve reduces the interest rate by another quarter point to the target range of 1.75%-2% in September 2019.

John Fourier

2019-10-07 12:35:00 Monday ET

Federal Reserve reduces the interest rate by another quarter point to the target range of 1.75%-2% in September 2019.

Federal Reserve reduces the interest rate by another key quarter point to the target range of 1.75%-2% in September 2019. In accordance with the Federal Res

+See More

AYA finbuzz podcast offers fresh insights into the latest stock market topics, economic trends, and personal finance inspirations as of November 2019.

Daphne Basel

2019-11-26 11:30:00 Tuesday ET

AYA finbuzz podcast offers fresh insights into the latest stock market topics, economic trends, and personal finance inspirations as of November 2019.

AYA Analytica finbuzz podcast channel on YouTube November 2019 In this podcast, we discuss several topical issues as of November 2019: (1) The Trump adm

+See More

We can learn much from the frugal habits and lifestyles of several billionaires.

Joseph Corr

2016-10-01 00:00:00 Saturday ET

We can learn much from the frugal habits and lifestyles of several billionaires.

We can learn much from the frugal habits and lifestyles of several billionaires on earth. Warren Buffett, Chairman and CEO of Berkshire Hathaway, still l

+See More

U.S. fiscal budget deficit hits $1 trillion or the highest level in 7 years.

Monica McNeil

2019-10-25 07:49:00 Friday ET

U.S. fiscal budget deficit hits $1 trillion or the highest level in 7 years.

U.S. fiscal budget deficit hits $1 trillion or the highest level in 7 years. The current U.S. Treasury fiscal budget deficit rises from $779 billion to $1.0

+See More

Former basketball star Shaq O'Neal learns a major money lesson from Amazon Founder Jeff Bezos.

Laura Hermes

2019-08-06 07:28:00 Tuesday ET

Former basketball star Shaq O'Neal learns a major money lesson from Amazon Founder Jeff Bezos.

Former basketball star Shaq O'Neal has almost quadrupled his net worth once he learns and applies an ingenious investment strategy from Amazon Founder J

+See More

The European Central Bank expects to further reduce negative interest rates with new quantitative government bond purchases.

Laura Hermes

2019-10-17 08:35:00 Thursday ET

The European Central Bank expects to further reduce negative interest rates with new quantitative government bond purchases.

The European Central Bank expects to further reduce negative interest rates with new quantitative government bond purchases. The ECB commits to further cutt

+See More