Netflix's stock price has been dropping significantly in recent days and weeks. Just in November it was trading between $650 and $700. Now it is trading at around $360. That is almost 50% drop in its stock price. I haven't paid attention to any specific news about Netflix what might be the reasons. But we know many stock market overall has been in decline. Even crypto market and bitcoin has seen big drops in prices recently.
Netflix has been a very successful company and facilitated the transition from traditional ways of watching movies, documentaries, and tv shows to online streaming. It has been a pioneer in this space and was able to recognize the shift that was about to happen with fast moving technological advancement. If it wasn't Netflix, it could have been another company that would serves as a catalyst in this shift to online streaming instead of using cable tv subscriptions and renting DVDs. This just shows once again how having a vision of things to come play important role in building successful companies.
I really like Netflix as company and the services they offer. I think/hope this price drop will be temporary and it will continue making its investors profitable. Many who invested in Netflix made good decisions. I doubt it is time for Netflix to decline as business, even though they have many more competitors today than years before.
I have been subscribed to Netflix for a while. I don't remember how much I even pay. It is deducted automatically, and I have checked in a while how much I have been paying them. Recently, I have read somewhere that Netflix was raising its subscription fees again. I don't really care. I trust they will make smart business decisions, and I am not planning to cancel it anytime soon.
However, this is not the case with my other online streaming subscriptions and services. I normally do not like to waste money and pay for services I do not use anymore. Today, there are many more streaming services Disney plus, HBO plus, Showtime, Apple TV plus, Paramount plus, AMC, Amazon Prime, Hulu, and others. I have used most of them at different times. When I realize any of them is no longer needed, I cancel them until there is a need to subscribe again.
I do not plan on cancelling Netflix. I am impressed with what they offer, how they operate their business. Let me explain why I am impressed with Netflix business decisions.
I admire innovators and visionaries that bring about new things and making things better for people. In the past we had no options but to use services of monopolies like Comcast and in return likes of Comcast wouldn't do anything to improve services but keep increasing their fees. Such companies would even split up regions amongst themselves so that they wouldn't have to compete. Netflix was the competition none of them expected. Many people have moved to online streaming services and stopped using services like Comcast cable. I think it is a win.
One of Netflix's clever business models was to offer DVDs in mail along with streaming services. I was surprised to find out they still have DVD mailing service as a separate subscription. I thought they went fully online streaming and stopped mailing DVDs. Apparently, there is till an option to receive DVDs in the mail. Offering this service, they were providing people with something they were already familiar with and compatible with their devices at home. This also added convenience of not traveling to video rental stores, and offered good collection of movies and tv shows. I believe this helped them with onboarding masses to their streaming platform.
One of the best decisions they have made is, using zero ads. No ads, period. Some of the other streaming services are still struggling with this decision. Hulu was one of the first competitors to Netflix. Hulu used to offer subscription and still show ads. I am not sure if they still do that or not. Netflix has proven that it is possible to be build a business and be profitable without relying on ads money. I think it is time for ads to go.
Another great move by Netflix was/is that when they offer TV Series to watch, they give all episodes at once and let the viewers to decide when to watch. This was something new and many liked it. Even today some streaming services offer only one episode a week, just like before. I can understand some of these services still have network tv agreements, some of them are aired on certain channels before they are available for streaming, etc. But there are services like Apple TV plus that continue the same practice. I do not think tv shows on Apple TV plus are aired on tv. Correct me if I am wrong.
Apple is one of the latest players in streaming space. They started their Apple TV plus subscription services. They have smaller collection of movies and tv shows available. But they do have some very good movies and tv shows though. One of the shows on Apple TV plus is See, and I remember they only showed one episode a week. I don't understand their decision here. Maybe that's how they try to retain users. Maybe they think if they offer the entire season at once, people will watch in a week or a month and cancel?
Few years ago, it was obvious that competition was coming and others would figure out the streaming technology and perhaps Netflix would be in trouble. Well years has passed, many services emerged, but somehow it doesn't look like Netflix is in trouble at all. In fact, they are stronger than ever. Next brilliant move by Netflix was to order production of movies and series for Netflix, only for Netflix. That was a bold and expensive move when they started doing it. Now they have huge collection and new movies and series are being produced added to their library every month.
They grew big enough that they don't have to rely on Hollywood to dictate their terms of licensing what they produce. Now Netflix is in a position to dictate its own terms. Impressive!
Netflix is great. But I also like other services too. Second closest one would probably be Paramount plus. It used to be a CBS app. I think that changed last year. They have a good collection too. I doubt they will ever be a competition to Netflix. When they first released their app, it has all kinds of problems. I think it still has bugs. But they do have some good tv series.
What are your favorite streaming platforms? What do you think about Netflix? Share your thoughts in the comments.