BusinessNetflix's subscriber downfall takes other streaming stocks down with...

Netflix’s subscriber downfall takes other streaming stocks down with i



Yesterday Netflix announced it lost subscribers for the first time in 10 years. The company reported 200,000 fewer subscribers in its latest quarter–well below the expected numbers, which weren’t high to begin with. The street was expecting an anemic growth of about 2.5 million subscribers.

Several reasons have been batted around for the subscriber fall. Netflix blamed password sharing as a big reason for fewer subscribers. Analysts also cited inflation–with prices rising everywhere, households are cutting back on what they consider non-essential services. And of course, Netflix users themselves were vocal on social media, citing Netflix’s recent price rises as a reason subscribers were abandoning the service.

The loss of subscribers has seen Netflix (NFLX) stock tank. As of the time of this writing, it’s down over 27% in pre-market trading. However, the fall of NFLX stock appears to have had a knock-on effect on the shares of companies that own other video streaming services. As of the time of this writing, almost all of the owners of the following video streaming services are down in pre-market trading. The name of the streaming service is listed followed by the owner’s stock ticker.

  • Disney Plus (DIS): –5.18%
  • HBO Max, CNN+, etc (WBD): –4.29%
  • Paramount+ (PARA): –5.68%
  • Amazon Prime (AMZN): –0.56%
  • Apple TV Plus (AAPL): +0.16%

As you can tell from the numbers, there’s a vast difference between Amazon and Apple, and the rest of the companies that own video streaming services. That’s likely because Apple’s Apple TV Plus and Amazon’s Prime Video are relatively minor revenue drivers for both companies, which are well diversified among myriad sectors.

However, video streaming for Warner Bros. Discovery, Paramount, and Disney are much more important to each company’s future revenue growth. Finally, shares of Roku (ROKU) are also down 6.3% in pre-market trading. The fall of Roku’s stock could signify jitters among investors who fear a fall in streaming services subscriber numbers will lead to fewer hardware sales of streaming devices.





Original Source Link

Latest News

This $12 billion high speed rail will connect Las Vegas and Los Angeles and lay ‘the foundation for a new industry’

The goal is for the line to be up and running for the LA Olympics in 2028. Work...

Biden tries a White House reset on climate and trade

This article is an onsite version of our Trade Secrets newsletter. Premium subscribers can sign up here to...

Discord CEO Jason Citron on why gaming and group chats are the future of the internet

Today, I’m talking to Jason Citron, the co-founder and CEO of Discord, the gaming-focused voice and chat app....

Prosecutors Want Trump Threatened With Jail For Gag Order Violations

Neal Katyal said that prosecutors in Manhattan aren’t looking to fine Trump as much as they want Judge...

Must Read

- Advertisement -

You might also likeRELATED
Recommended to you