Is Netflix nearing the end of its glory days?
Netflix has been one of our favorite online streaming services among Amazon Prime, Hulu and Netflix. Different streaming services focus on different sets of audience to target their product. Hulu might be great for catching up on recent TV shows while Netflix and Amazon prime offers a huge library of shows and movies which are relatively old. Amazon prime offers you to download videos while Netflix believes in saving local storage and hopes to have internet connection all the time. Different streaming services offers almost same subscription price to remain competitive in the market.
Netflix did really well in reaching 83 million members in over 190 countries but recently Netflix has been facing many challenges and its share price dictates the same story. Netflix shares has been almost hovering around 100$/share for about a year. They are failing to attract new users even with their competitive price model and facing tough competitions from Hulu and Amazon prime. The biggest concern which Netflix has to address is the non availability of recent TV shows in-spite of being the oldest in the market. Also, the affect of Net neutrality could cause a major blow on Netflix and in turn affect the price subscription for every user. Expanding Netflix in Asian countries is always a problem because of numerous local competitors and pirated online content.
Netflix should be concerned about its business model and they should think more seriously about advertisements as their business model along with subscription, to survive in the online streaming industry. Netflix has to think quickly otherwise rumors of Disney, Apple or Amazon acquiring Netflix may be true.