The days of Netflix having a free run at being the number one streaming platform are long gone. Amazon might have been the first serious contender to the crown with its Prime service, but it won’t be the last. Not by a long shot.
In fact, the effects of a flooded marketplace are already taking its toll on Netflix, and most of its competitors haven’t even launched. More on this later.
And on July 17, following its Q2 earnings report, the company posted an 11-percent loss in shares.
The loss is down to a number of factors. Firstly, 4.8 million new global subscribers were predicted to sign up to Netflix. In reality the number was around 2.7 million. Secondly, the company has struggled with worldwide price points that are deemed too costly for most.
However, the third, and biggest reason that Netflix is going through a rough patch is because of the aforementioned competition looming on the horizon and the content slices are about to be a lot leaner for them.