Wednesday, October 15, 2014

Netflix gains fewer new subscribers than expected

http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-netflix-earnings-20141015-story.html

The streaming video company Netflix added fewer subscribers these past few months than the usual wave of people they get. They had about a 3 million subscribers when they had expected around 3.69 million like previous times. Shares even fell more than 25%. This caught my eye because I had actually thought Netflix has been getting more popular than before. What could be the reason for these drops? Netflix believed that their increased monthly fees were the reason why. Their advertised prices do change a dollar or two when subscribing due to HD quality or other factors you may want. But they are trying to find a way to pull new users. They are betting on original shows like, "Orange is the New Black" and "House of Cards" to reel many people in. As a consumer, it's interesting to see their strategies on shows I watch myself. I love "House of Cards" and would recommend it to many people. That's exactly what they're betting on. Now that they've made their mark in television,  Netflix wants to move on to bigger things. In one word, this would be feature films. They actually just made a deal with Adam Sandler to star in four upcoming movies they have planned. As a filmmaker, this is interesting to hear about jobs in this industry that can come from anywhere. You could end up working for a big budget studio or a video streaming company. Another company thinking about competing with Netflix is HBO. They have plans to start their own a sort of streaming service. With exclusive shows, like "Games of Thrones", this idea may be really successful. As a student, it's nice to learn about what's happening behind the scene of the infamous Netflix company. A question I do have is, if they're having trouble with subscribers now, how will they handle when competition starts arising like a HBO streaming service?

2 comments:

  1. Crazy how Netflix is in a critical position right now, I wonder what new things they're going to have to come up with in order to get their ratings back up!

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  2. Netflix has been getting a lot of different type of comment, they have been talking about having new shows and programs that will help them but also they have been talking about raising there prices so I really don't know which way Netflix is going right know.

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