Netflix has recently witnessed a drop in the number of its subscribers. The on-demand video screening giant went through ratings hell on the 17th of July 2019, when they reported a loss of $126,000 streaming customers in the second quarter of 2019.
The company’s estimated 5 million global growth fell to 2.7 million net sign-ups. Netflix blamed it on the subscription price increase and less enticing movies and TV series. Although the company announced new contents, its shares sold only 12% and in the process, erased $17 billion from its market value.
Netflix has been the major reason for the accelerated drop in cable subscription. Investors were intrigued by the video-streaming app’s rapid growth and awarded the company an absurdly rich valuation. Leaving the likes of Disney and Time Warner (now called WarnerMedia, a unit of AT&T) with few viewers.
See also: Econet Shuts down Video Streaming Service Kwesè Play
This is because unlike Netflix, their businesses still rely on TV commercials and cable fees to drive profit. However, they are working effortlessly to change the narrative and roll out their streaming platforms. Disney plans to launch Disney+ on the 12th of November 2019 and intends to add ESPN+ and Hulu for fans who want all three services.
AT&T’s WarnerMedia will also introduce HBO Max, an on-demand video content version of the HBO app that will contain Turner network programs and Warner Bros films. And with the low offering of Disney+ at $6.99 a month, coupled with the quality of Disney and HBO/Warner content, they both have the potential to lure viewers away from Netflix.
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