Netflix Under A Loss of Confidence

Yes, Netflix has many amazing shows on their list. But due to the famous shows coming to an end or due to a lot of competition, there seems to be a loss in subscribers. This has further let down Netflix’s confidence.

The Loss Reported by Netflix –

Netflix reported earnings on Wednesday night, and the results were disastrous. The company saw its first major loss in US subscribers last quarter, and a mere 2.7 million paid customers added globally, nearly half of what was forecast. Stocks dropped by more than 10 percent just after the report came out. It’s a terrifying slowdown for a service that’s based on subscriber growth, and raises new questions about how long the company can justify its content spending spree.

On a call after the release, Netflix executives emphasized international markets where subscriber growth is still healthy. Nearly all the company’s new subscribers were from international markets this quarter, and according to CEO Reed Hastings, there’s still plenty of room to grow there.

There are about 700 million households that pay for TV outside of China — the equivalent of the US hundred million — and that’s one established market,” Hastings said on an investors call Wednesday night. “Do we have enough content in each of those countries? The internet is capable of some very large customer bases.”

Netflix’s View on International Markets Specifically India –

We’ve been seeing nice, steady increases and engagement with our Indian viewers that we think we can keep building on,” Sarandos said. “Growth in that country is a marathon. We’re in it for the long haul.”

Basically, Netflix executives spent a significant portion of their call talking about India, where the company expects significant growth. It’s a largely unsaturated market, and one that Netflix has tried to develop content for over some time. Netflix is about to launch five new originals for India, some of which may be marketed to audiences in the US and Europe, too.


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That international focus is paying off, according to Sarandos. Three particular shows — How to Sell Drugs Online (Germany), The Rain (Denmark), and Quicksand (Sweden) — have all found big audiences outside of their native region. Each show has amassed between 12 and 15 million global viewers, Sarandos said, adding that although “they’ve been deeply relevant in the home country, and travel the region very, very well,” their finding audiences everywhere.

We’re seeing some real locally, regionally and globally relevant content coming from all over the world,” he added.

But the company is facing a number of problems that could affect their overall growth in the years to come. Netflix is losing a number of heavily watched licensed series, like Friends and The Office; to competitors WarnerMedia and NBC Universal respectively. A lack of enticing originals; which plagued the company’s most recent quarter and helped contribute to a loss of 130,000 subscribers; will continue to grow unless Netflix can ramp up production. It’s part of the company’s plan; permanent studio sets have been purchased for Netflix to produce films and TV shows faster.

Hopefully the company’s original new show – The Witcher would make it big for Netflix.

2 Replies to “Netflix Under A Loss of Confidence”

  1. Need to more movies & less reality shows or I will be leaving Netflix it seems like that’s all there is on every channel.

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Navaneetha Suresh

Navaneetha Suresh

Navaneetha, commonly known as "nav", loves to read, play badminton, play the keyboard and sing but when she's not doing any of those, she loves to write. What started as a high school hobby to write is now her ongoing passion.

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