With the introduction to new services like Apple TV and Disney+, people are constantly wondering how Netflix will stand among these competitors. One of the few ways that consumers can monitor this is the stock exchange, and Netflix isn’t taking the hit Wall Street projected.
In the third quarter of the year, Netflix actually rebounded from the previous one after it faced a 21% loss in shares. However, with the release of additional seasons of Stranger Things and 13 Reasons Why, Netflix was able to overcome this loss and gained an additional 6.77 million subscribers, which was more than the expected number given by IBES data. In addition, the new installment of The Crown, along with the release of The Irishman, Netflix is expecting an additional 9.4 million gain in users.
With the release of all the other steaming services coming soon, Netflix is still thinking ahead and planning for the future. A letter to Netflix’s investors stated, “In our view, the likely outcome from the launch of these new services will be to accelerate the shift from linear TV to on demand consumption of entertainment.” While the future is still unknown to how Netflix will handle the new competition, it seems like Netflix still has a fighting chance.
I think this article is interesting because it shows that Netflix is still being able to compete. It’s also interesting to see the data analytics of the Netflix stock rise even though they are still collecting debt from investing in new projects. One thing this article proves is how, in the end of the day, content and shows is what drives the sales. People will cancel their subscription or renew it based on the release of shows, and the quality is what drives this activity. I think this practice of subscribing for a month and then canceling is something that’s going to be used a lot more as more streaming services come out. I honestly think the future is going to be subscribing to certain shows, rather than the entire service making an even more tailored experience for the user.