Netflix stock has taken a beating tonight. In after hours trading the stock has fallen 25%, or by almost $90.
The reason? The first quarter report issued this afternoon showing the streaming giant has lost 200,000 subscribers in the last quarter and expects 2 million more on the way out.
The company is blaming shared passwords on the steep decline. They say 100 million people worldwide are abusing the system, with 30 mil in the US and Canada. If they could get those people to pay up, they say, the picture would be a lot rosier.
That may be it. Or are the reasons more complicated? When Netflix took off they were the only game in town. But now we’re all paying for lots of streaming services including Hulu, Disney Plus, Amazon Prime, and myriad others.
Also there’s too much content. As a reviewer, it’s impossible for me to keep up with it. For a person not covering TV and movies as a business, I don’t know how anyone does it. (And I pay for those subs, by the way.)
And let’s not forget HBO and Showtime, which have the advantage of being on the TV anyway, as part of an overall subscription. No Roku or Apple TV device involved in that, no switching over to Smart TV. HBO is just there at channel 301. And both cable outfits have plenty of hits to watch, from “Succession” and “Hacks” to “Billions” and “Yellowjackets.”
Netflix has had its share of watercooler shows, from “Bridgerton” to “Inventing Anna” and “Ozark,” “Grace and Frankie.” They’ve also had very compelling, Oscar worthy movies like “The Irishman,” “Roma,” and “The Power of the Dog.”
But now, even Starz Channel has “Gaslit,” and Hulu had “The Handmaids Tale,” and Disney plus is churning out “Star Wars” and Marvel shows. Amazon is trying, with shows like “Mrs. Maisel.” The time available to watch all this stuff is shrinking. And some of like to go to sporting events, concerts, and dinner. Or just take a walk.
The game is narrowing. And the rules are going to change.
