In the last financial quarter, there were official reports that streaming giant Netflix has lost 200K subscribers. In no time, it lost 70% of its share value and became a victim of patronage.
But there was even a more horrifying prediction which said that the company will further lose about 2 million subscribers. On Tuesday, Netflix released its data which is a big relief for them and investors too.
Netflix reported losing 970,000 subscribers which is much less than what they expected the results to be.
As a result, the stock prices rose by 8% and the company is even expecting a gain of a million subscribers in the third quarter which would end in September.
The last few months were game-changing for them. They let go of many employees, announced a partnership with Microsoft to bring a more affordable price tier, and will also go after password sharing.
But the biggest savior for the company was Stranger Things which emerged insanely successful throughout the globe.
But this learning has come at a cost and we might not see mega-budget films and series on the platform.
“Netflix has taken an expensive and extremely high-risk approach to streaming, which seems to be: let’s outspend everyone and be all things to all streaming consumers. The scale of such ambition is impressive, but it turns out it’s unsustainable. They are learning to become more strategic,” Spencer Neumann, Chief Financial Officer at Netflix said.
This whole event is crazy but a big lesson too. Let’s wait for what Netflix really does in the third quarter.
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