If there were a stock market “hall of fame,” Netflix would be a shoe-in.
Its stock has soared 8,500%+ in the last decade as “streaming” video has caught fire.
Netflix achieved those gains by stealing tens of millions of customers from cable companies. Last year, half of Americans age 22–45 didn’t watch a second of cable TV. And 35 million Americans have dropped cable in the last decade.
But it’s time to come to terms with a sad truth…
Netflix’s glory days are over. And what’s coming next won’t be pleasant if you own Netflix stock.
So far, they’ve been right. Have you seen Netflix’s stock price? Holy cow. It has rocketed 8,300% since 2009, leaving even Amazon in the dust:
But don’t let its past success fool you.
Because Netflix is not the future of TV. Let me say that one more time… Netflix is not the future of TV.
Remember when Netflix used to be a DVD-by-mail company? Well, for 2.7 million subscribers in the US, it still is.
The familiar red envelopes have been arriving in customers’ mailboxes since 1998 and helped earn the company a healthy $212 million profit last year.
Why are so many people still using this old-school service in the age of streaming? There are a number of reasons.
New York (CNN Business)”Friends” will be there for you on Netflix through 2019, but the minor internet meltdown over a rumor that the show was leaving goes to the heart of the biggest question about Netflix’s short-term future: What happens if and when its competitors pull their most popular content from Netflix to make it exclusive to their own streaming services?
One show might not make a difference, but Disney and WarnerMedia, both of which are launching streaming services next year, hold the key to a huge trove of content that lives on Netflix. WarnerMedia’s “Gilmore Girls” and “The West Wing” and Disney’s “Grey’s Anatomy,” for instance, all had big fanbases when they lived on their respective networks and are now big draws for Netflix.
Orange Is the New Black’s sentence is up. Netflix announced this week that the show’s seventh season, hitting the streaming service next year, would be its last. After that, it’s dunzo. For many viewers, this is sad news—the inmates of Litchfield have been a part of the conversation for a long time now. But for everyone else, and for the future of TV broadly, it’s a move that’s long overdue
More than one-fifth of young adults who stream shows like Game of Thrones or Stranger Things borrow passwords from people who do not live with them, according to a Reuters/Ipsos poll, a finding that suggests media companies are missing out on significant revenue as digital viewership explodes.
Twenty-one percent of streaming viewers ages 18 to 24 said they had accessed at least one digital video service such as Netflix, HBO Now or Hulu by using log-in credentials from someone outside their household at some time. Overall, 12% of adults said they did the same thing.
Even an inexperienced movie director would have said the symbolism was too heavy-handed. When the screening of a Netflix-backed movie started on Thursday night at the prestigious Cannes Film Festival, the aspect ratio was wrong, so large parts of the film couldn’t be seen.
The problem was quickly corrected, and the Festival said it was just a simple projection error. But that small mistake took on much greater significance because it involved Netflix.
To fend off Netflix, Time Warner Inc. is taking a page from the streaming-video giant. And it’s turning to a 6-foot-8-inch former basketball player and war refugee to make it work.
Time Warner’s Turner division, home of CNN, TBS and TNT, is planning to tailor online delivery of its channels to individuals’ tastes, tracking preferences like Netflix does before suggesting what subscribers should watch. The company behind Time Warner’s effort is iStreamPlanet, in which it bought a majority stake two years ago for $148 million.
While Netflix remains the giant in the world of over-the-top (OTT) streaming, other services are staking their own claims to the landscape.
According to a new report by comScore, more than half of America’s wi-fi connected homes have at least one OTT streaming service (streaming services that don’t require an additional cable subscription). The dominant service, in a whopping 75 percent of those homes, is Netflix—presumably because no one wanted to miss out on Stranger Things.
We all remembered when MTV famously played the music video “Video Killed the Radio Star” over and over when the service first aired. On air radio remains a mainstay because it is one of the few information and entertainment services one can access and enjoy while working, driving or working. However, video streaming does have the potential to kill TV services for several reasons. This is why stations like HBO are changing and tech companies from YouTube to Amazon are altering how they do business.
Content You Can’t Find Anywhere Else
YouTube, Amazon and Netflix have free content available on demand while other movies and shows require you to pay per episode. They try to differentiate themselves by not offering the same catalog of movies and TV shows.
Partially in response to licensing rights that were a legal mess to get approved when Amazon and Netflix tried to license American TV shows abroad, they started curating their own content and creating their own shows. For example, you can only find the modern remake of “The Handmaid’s Tale” and “Fuller House” on Netflix while “Transparent” is only on Amazon Prime.