Netflix’s growth has slowed to a near stop, causing investors to flee.
According to Buzzfeed, the company’s stock prce dropped by 15% as it revealed its disappointing numbers to investors. Earlier, the company had predicted that it would add 2.5 million new customers to its rolls, yet it added only 1.7 million.
Part of the reason for Netflix’s disappointing performance is that the streaming giant, whose titanic rise to power contributed to the fall of brick and mortar stores like Blockbuster and Hollywood Video, faces a growing number of alluring competitors. Streaming services like Amazon Prime and Hulu offer original content on par with Netflix’s own shows, along with many hit blockbuster movies and hot shows that Netflix lacks. New competitors like Playstation Vue also offer customers live streams of their favorite TV channels including ESPN, CNN, Fox Sports and Disney Channel. While these services also offer on-demand content, Netflix lacks the kind of live content which makes these services more attractive.
While Netflix does often obtain the right to stream recently-aired shows, it is sometimes seasons behind other services like Playstation Vue. Furthermore, other services, like Amazon and Hulu have obtained exclusive rights for several of today’s most popular shows.
Videophiles are also able to obtain new releases more quickly using on-demand video services like Walmart’s Vudu and FandangoNow than they are on Netflix.
Despite the spite of the fact that competition is increasing while competitors are offering new features Netflix lack, the company has added few new features. Worse, it has hiked up its prices – even for long time users. At the same time, the company made it more difficult for users in other countries to watch the US version of Netflix and for US Netflix users to watch the content Netflix offered abroad. This meant that users who once enjoyed watching Netflix shows from abroad had a much smaller selection of movies and television shows to choose from.
With Netflix offering less content, placing more restrictions on its current users and and failing to keep up with the streaming breakthroughs of services like Hulu and Playstation Vue, many users have begun looking elsewhere for entertainment.