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

A brief biography of Andy Yeh

Andy Yeh Alpha

2020-11-22 11:30:00 Sunday ET

A brief biography of Andy Yeh

A brief biography of Andy Yeh Andy Yeh is responsible for ensuring maximum sustainable member growth within the Andy Yeh Alpha (AYA) fintech network pla

+See More

American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization.

Becky Berkman

2019-10-23 15:39:00 Wednesday ET

American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization.

American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization. The Business Roundtable offers this statement

+See More

We need crowdfunds to support our next responsive web design and iOS and Android app development.

Andy Yeh Alpha

2019-01-13 12:37:00 Sunday ET

We need crowdfunds to support our next responsive web design and iOS and Android app development.

We need crowdfunds to support our next responsive web design and iOS and Android app development. Upon successful campaign completion, we will provide an eb

+See More

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Meta Platforms (U.S. stock symbol: $META).

Daisy Harvey

2025-09-21 12:32:00 Sunday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Meta Platforms (U.S. stock symbol: $META).

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund

+See More

President Donald Trump releases his plan to slash income taxes for U.S. citizens and corporations.

Jacob Miramar

2017-09-03 10:44:00 Sunday ET

President Donald Trump releases his plan to slash income taxes for U.S. citizens and corporations.

President Donald Trump has released his plan to slash income taxes for U.S. citizens and corporations. The corporate income tax rate will decline from 35% t

+See More

E.U. antitrust regulators impose a fine on Qualcomm for advancing its exclusive microchip deal with Apple.

Fiona Sydney

2018-01-17 05:30:00 Wednesday ET

E.U. antitrust regulators impose a fine on Qualcomm for advancing its exclusive microchip deal with Apple.

European Union antitrust regulators impose a fine on Qualcomm for advancing its key exclusive microchip deal with Apple to block out rivals such as Intel an

+See More