Tesla’s Netflix Problem
Tesla is about to run into the same problem that Netflix is running into. Competition.
Netflix
When Netflix started producing instead of just distributing content, it was a big risk, but it seemed to pay off. After they first produced House Of Cards in 2013, subscriber growth took off.
Producing content was a risk because this pissed their suppliers off. Netflix went from a place that distributed content for studios to another studio that competed with them. Shots fired.
Now the empires have struck back. Disney and ViacomCBS are pulling content and moving it to their own streaming services (Disney+ and Paramount+). Warner Bros Discovery is removing Friends (Netflix’s most popular show) and moving it to HBO Max. Places like HBO never fucked with Netflix in the first place, and Apple and Amazon Prime are streaming too.
Netflix now faces a war on multiple fronts. You could say that Netflix had to fire the first shots, but now they’re in a war with their former suppliers, old competitors, and new competitors as well. And it’s taken a toll.
Netflix subscriber growth has stalled out and is now in decline. This quarter they reported losing 200,000 subscribers, which is nothing to sneeze at. In truth, they lost 700,000…
