This week, Netflix reported a drop of 200,000 users. This 1/10th of a percent of their subscribers moved on for whatever reasons. Netflix said it wasn’t a problem as they’d add commercials to certain new tiers, but also tack on chargers to allow for previous freeloaders. In the span of just hours, their stock dropped by around 1/3rd. They lost $50 Billion in market value. If the leader, at 221 million subscribers, can get hit this hard by the fickle stock market, this isn’t good for them, or others. I’m not leaving Netflix anytime soon, but they have some problems ahead. Some of their own content is weak, and others are just too strange.
Having lost subscribers for the first time in more than a decade, Netflix faces the new challenge of stagnation from a position of strength.