Fighting for Dominance – Netflix Gains Back Losses
With the likes of Disney, Warner Bros Discovery, and Apple in the mix, the long-time incumbent, Netflix, has released better-than-expected positive earnings that have shaken the entertainment industry and the stock aftermarket. Following losses previously of close to 1 million subscribers, Netflix now reports they have gained back their losses and then some with an addition of over 2.4 million subscribers. The original report forecasted a growth of just 1 million subscribers, thus the shocking afterhours news sent Netflix’s share price up around 14% in the aftermarket.
The streaming titan also claims that pressure and resistance to password-sharing websites starting next year will help bring consumers back to subscribing with their own accounts. Recently, Netflix has also detailed a new future subscription plan, one that is lower-tiered than currently offered, being cheaper at $7 a month but containing advertisements shown during content streaming. Nevertheless, new curated content including “Dahmer: Monster” has smashed previously held streaming records by another Netflix series “Squid Game”, adding to the relentless popularity of the service that will seem to stay for a long time.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.