Netflix shares fell to an extent that neutralized all of its 46% gain for the year at its peak and officially entered negative territory on Monday. This was caused by an unexpected loss of subscribers and increased competition in streaming services.
The streaming giant lost some flare after being stripped of shows like NBC’s most popular show “The Office” and other shows like Friends etc, which resulted in a rare loss in U.S. subscribers and a large miss on international subscriber adds in the second quarter, which sent the stock plunging and suffering its longest losing streak in five years.
Moreover, announcements of potentially more enticing streaming services have been popping up lately like Apple‘s Apple TV+ at a very enticing $4.99 a month for a family subscription or a year’s free subscription for any Apple device bought with shows like See. Disney will offer high definition streaming as part of its standard $6.99 plan for its new Disney+ channel. Netflix’s basic plan in the U.S. is $8.99 per month.
Most of Netflix’s gains for 2019 came from a big pop in January when the company raised prices by 13% to 18% then and the stock soared. In a more crowded streaming space today, hiking prices may not be so welcomed by investors again.
Netflix is looking to try its hand at international markets like India and other Asian countries.