Netflix is losing darling shows, endorsers, and certainty

Netflix, the streaming giant, has suffered a loss in the numbers of its subscribers in the country for the first time in many years. According to a report released by the company, Netflix lost as many as 130,000 subscribers across the country in the second quarter of 2019. This has happened for the first time since 2011, and even though the company added nearly 2.7 million subscribers worldwide, it fell short by nearly 50% in its target as it had predicted it would add 5 million new subscribers worldwide. Netflix support for its customers is as solid as it has always been but experts are worried at this development. Some of them are saying it is a harbinger of harder days for the streaming giant in future.

According to Reed Hastings, CEO of Netflix, there is no need to read much into this loss of subscribers in the U.S. He puts the blame for this loss squarely upon the recent price hike introduced by the company. He adds that the inability to add original content more frequently has also been responsible for the loss in the numbers of U.S subscribers. In January this year, Netflix announced a hike in its subscription rates that is the steepest in the history of the company.

Talking to the shareholders of Netflix through a letter, Hastings said that the shortfall in the projected numbers of subscribers was uniform across all regions but the rate at which new subscribers were added was the smallest in the regions where this price rise was introduced. He added that competition was not a factor in the loss of subscribers as Netflix continues to enjoy overwhelming support from the customers across the country.

However, the news that Netflix has suffered from a loss of subscribers in the U.S has not been taken lightly by the shareholders of the company. As soon as the new of subscriber loss spread through media and television, the stock of Netflix plummeted in no time at all. Hastings, in his letter, has been quick to point out to the investors that this loss is temporary and the number of subscribers will start to grow again very quickly. He is optimistic because of the start of new seasons of successful web series like Money Heist, The Crown, and Stranger Things. There is also the highly successful series called Orange is the New Black that is coming to an end this season.

Netflix support to calm down the sentiments of its investors notwithstanding, there is no doubt that the company is facing a fierce competition in the streaming industry form new and emerging players like Disney, NBC Universal, Apple, and Warner Media. Hastings is not the one to accept defeat easily. He says that though Netflix will lose a lot of content to Disney and series like The Office and Friends will also wind up in a few years, it will also pave the way for the creation of original content for Netflix.

Crazy fans are hoping Hastings is right in his analysis of this subscription loss. 

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