How Netflix Can Save Itself From Its Rapid Decline
It has been around one year that Netflix kept assuring its consumers that it was not losing any momentum. The company explained the slowing-down of their subscriber growth as simply getting rid of their “Covid issues”. However, yesterday, the company announced that it admitted its business is indeed struggling. The company foresees that they will lose another 2 million subscribers over this current quarter. Its stock dropped close to 35% and is now worth below $100 billion.
Related: Netflix Introduces New Rules Charging Additional Fees For Illicit Account Sharing
Is Netflix Sinking Day-By-Day?
Is Netflix a thing of the past; now it’s time to take a look at all of the things that are coming up next? While Netflix once thrived as a game-changer in the entertainment industry, now many newer streaming companies like Disney+ and HBO Max are duking it out with streaming giants like Amazon Prime and Hulu.
Netflix once took over cinemas but now major studios like Disney and WarnerMedia plan to dedicate their own streaming services with little crossover into the Netflix realm. Will Netflix’s original content continue to captivate its audience? Will big-name studios be cannibalizing their profits by launching their own services? Only time will tell, but for now, we can look forward to what exciting new things might be on their way.
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What Can Save Netflix From Its Rapid Decline?
Despite the company’s massive global expansion, there still seems to be room for improvement. Netflix has recently announced that it would be increasing the cost of membership for new subscribers, but this hasn’t done much to relieve any pressure that’s been put on the company, especially concerning its finances.
The company needs to look for new revenue sources that will help it boost its revenue. In this regard, Netflix has decided on a new solution. The company has made the decision to try some of the things it claimed it wouldn’t do and will now create a cheaper, partially ad-supported tier in the next year or two. It is not yet clear what this tier will be like. However, Netflix’s management has done an excellent job analyzing how advertisers feel about this reported move and they seem rather shocked by it.
Related: Popular Shows And Movies Coming To Netflix This April
Moreover, if Netflix manages to pull it off and prevent password sharing with success, they’re estimated to generate additional revenues per customer that could indeed help them see better profits. However, this also poses a risk of alienating customers who may decide to cancel their subscription due to frustration with ads interrupting their streaming experience – so it’s all very risky and difficult to predict.
Source: The Wall Street Journal
