Netflix subscribers in North America may have noticed the price increases the company is rolling out. Netflix investors have almost certainly noticed that the stock price had fallen 41% since its all-time high at the end of 2021. From about $700 to $400 in a couple of months. Ouch.
As Netflix is finding out, the streaming wars are bloody, with serious competition coming from Disney, Apple, and other major studios and networks. Netflix still rules I total subscribers with roughly 222 million, but Disney had 118.1 million as of the end of October and grew their subscription base 60% from October to October. Netflix grew its subscriber base by just 9% during that same time frame.
Media analysts say Netflix is having a hard time signing up new customers in the markets they have been in the longest, which means the streamer will have to make up for that by ramping up their recruiting of customers in India and other Asian countries.
With no advertising revenue, Netflix relies on subscriptions as their primary source of revenue, which hampers their ability to grow. That is something Wall Street frowns upon and part of the reason the stock has dropped so dramatically.
Netflix knows it and is aggressively developing other verticals, specifically gaming.
During an earnings call recently, Netflix’s co-CEO Reed Hastings talked about ongoing Covid overhand and economic hardships being two significant reasons for the less than stellar financial report.
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