A Sudden Decline
Over the past few weeks, numerous
reports have come to light that have highlighted the constant waning of
Netflix’s popularity with the Company losing Subscribers for the first time in
over a decade, as many of its Shareholders sue the Company itself over its
Higher-ups providing misleading information regarding their Net Subscriber
Losses and its numerous Prospects, this has led Netflix to face diminishing
Share Prices. The reason for this halt in growth is mostly attributed to the
onslaught of new Competitors in the Streaming Service market such as Disney
Plus and HBO Max. These Competitors’ upward trajected popularity as well as the
suspension of Netflix Services in Russia following the Country’s invasion of
Ukraine, and the average quarterly increase in Inflation rates, led to Netflix
losing nearly 700,000 Subscribers. All this combined led to the Company’s
stocks falling by a major 35% in merely one day. The aforementioned queries
certainly harken troubling times for the once celebrated Streaming Service
Company.
Going Live
On the heels of this stagnation in
growth, Netflix has decided to experiment with Livestreaming services. This
avenue can potentially open up a plethora of numerous possibilities for
Netflix, some of which may most certainly help the Company recover from its
recent losses. These possibilities could include a Live Voting Service for
various Talent Shows and Competition Series, moreover it could also pave the
way for Live Show Reunions such as the recent special reunion episode of
‘Selling Sunset’. Additionally, the most prominent use of the Live Streaming
Service can be through the streaming of Live Comedy Events such as Netflix’s
own ‘Netflix is a Joke’ festival that hosts over 300 prominent Stand-up
Performers ranging from Dave Chapelle to Pete Davidson. Live shows such as
these are definingly going to bring in loads of view for the Streaming
Platform, and they just might be able to breath new life into the Company
itself, enough to help it recover from its aforementioned losses.
Effect on the Company’s
Future and Competitors
Although an entirely new venture for
Netflix, the medium of Livestreaming is not uncharted territory for its various
Competitors in the market. Disney’s Streaming Service, Disney Plus has already
delved into providing a Livestreaming option for their users by providing a
Live viewing of the 2022 Academy Awards in February. Disney Plus’s
Livestreaming future also seems to be set in stone with the recent announcement
of Live Competition Series such as ‘American Idol’ and ‘Dancing with the
Stars’, moving to being aired Live on Disney Plus. All this considered,
Netflix’s venture into the Livestreaming avenue could potentially help the Company
keep up with these Competitors, instead of being swallowed by their consistent
growth.
Moreover, this foray into Live
Entertainment seems in line with Netflix’s recent plans to start adding an
Ad-Supported Tier to their Subscription Platform which is reported to arrive
sometime during this Fall. With the inclusion of this option, Netflix could be
put on par with its Competitors such as Hulu, Disney Plus and HBO Max once again,
since all of these Competitors already provide a cheaper Subscription option
with ad breaks.
With these new Live and Ad focused channels of availability for Consumers, Netflix might very well be on a path of recovery from its fall from grace.
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