With the recent round of stock market value fall, Netflix reported a decline in streaming subscription members, it makes everyone wonder whether The age of Netflix and effect is gone? The company well known for providing good entertaining content is facing decline in subscribers, in current market competition. More and more global companies are entering the entertainment business and starting to offer their own content and create various bundles for exclusive content. Consumers had only that much of the time, as the world attempted recovery from COVID-19 pandemic, more and more people are required back to work, which in one end reduces their time for entertainment. The market competition, almost every global company attempts to enter the entertainment business some subscribers may move over. From Amazon, Apple, Disney and list go on, and they had their package bundled, which you can imagine a typical consumer can subscribe for how many?
We also notice that CNN just launched their subscription business for a month and shut it down, refunding back subscribers, that will only mean, it is far below target number of subscriber interest for news subscription. In the age of on demand and instant notice for what is going on in your smartphone or you will see it from the online news or social media, will people really subscribe for so much news? The answer is obviously nope.
Netflix kills television, but what next? The Internet, open in nature, continues to provide a platform for all kinds of innovation, or obsolete old business models that succeed in the past. Recent and first biggest loss in 10 years for 200k subscribers lost in the first quarter of 2022 alone, what will remain for the rest of 2022? Without doubt, Netflix remains the top player in the field, if they are losing subscribers, the subscribers will only have few places to go, where logically can be expected. For instance, Apple is bundled their new hardware purchase with free bundled for ton of value of services, if you under that, will you cut off Netflix subscription? We think most of people will do so. Since it kind of bundled you get it, and it helps you to save for a year or maybe longer. It’s a wake up call, maybe there are too many players at the time for streaming services, maybe, only the future can tell the fact what is going on. After Metaverse (formerly Facebook) earnings report caused the stock price crash, so did Netflix falling 35% (USD 50 billions wipe off) and a lot of action needed to be done, just like what Metaverse is doing before. Both are facing subscribers drop, the business model for keeping adding more subscribers, turning into more revenue business model for subscription and selling more advertising space is declining.
In the past, decline in legacy cable subscribers, as tech innovator Netflix stream came into the market. Current decline in the subscribers may be due to other change factors, such as more players and some are even providing it for free as part of bundled. Stock market price has a tendency to value high no but reality, but promising futures. As you can see, the Tesla stock market price is overvalued for how many times, even so they are not producing the most cars in the industry, and only rank 8th in the car producer market in one news come across, but due to generalization the market believes the future is electric vehicles sooner than expected. With all traditional car players now starting to roll out their electric vehicle product, and their existing channel networks, the future may change out from most people’s expectations. While most of the car producers remain focused on their car business, Tesla as everyone knows, their chief is venturing into spacecraft and recently attempted to be a social media platform by acquiring Twitter. Which is the right strategic move, maybe merely 3 to 5 years can be told by the market fact at that time.
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