Netflix stock fell by 10% this week after revealing its and Wall Street's subscriber number predictions for Q2 fell way short.
Remember not so long ago when we had to physically buy movies if we wanted to see them anywhere else aside from the cinema? Or even worse, having to wait for TV shows until they were actually on television. Thanks to streaming services that is no longer the case, and we can basically watch anything we want, whenever we want.
While there are a growing number of streaming services out there, all of which offer something slightly different, Netflix is unquestionably the industry leader. As of the second quarter of 2019, more than 150 million people worldwide had subscribed to Netflix. Plus, we're assuming that doesn't include all the friends, siblings, and exes who are piggybacking off the accounts of us idiots who pay for it.
At this point, Netflix feels like the streaming giant that will never be toppled. Judging by some of the other figures revealed by Netflix during Q2 of this year, courtesy of Business Insider, would suggest otherwise. Netflix and Wall Street expected a further five million people to subscribe to Netflix during Q2. They fell well short of that figure, only managing to draw in an additional 2.7 million.
2.7 million might sound like a very big deal to the likes of us, but when Wall Street is expecting almost twice as many as that, it's not good. When Netflix broke the bad news earlier this week, its stock price dropped by a massive 10%. It attributes the failure to hit the target to a lack of original content during the quarter. With Stranger Things 3 already released at the start of Q3, and new seasons of Orange Is The New Black and GLOW still to come, Netflix is confident that normal service will be resumed.
Many are pointing the finger of blame firmly at the yet to arrive Disney Plus. The brand new streaming service will be made available later this year and sounds incredibly promising. Netflix is currently turning a blind eye to it, even going as far as to say Q2's issues can't be related to new rivals as none emerged over that three month period. Perhaps those yet to commit to a service are simply awaiting the arrival of Disney's offering.