Written by :
Published on :
-
Company witnessed a sharp dip in its stock price the week of April 18
-
Betting markets to include whether Netflix incorporates an ad-support model and if company gets acquired by year's end
The popular streaming service Netflix has seen its stock price plunge 35% the week of April 18 after the company announced its first loss in subscribers in more than a decade. This translated into a $50 billion loss in market cap. So far the price is down 40% on the year.
"What worked until this point may not be working anymore," Michael Nathanson, a media analyst at MoffettNathanson, told CNN Business. "The world's changed."
The question for Netflix (NFLX) — once the untouchable king of streaming — has gone from "what's next?" to "what now?"
Concerns seem to be centered around household password sharing coupled with increasing competition. HBO Max, for example, announced this week nearly 77 million in total new subscribers.
Netflix admitted it has long permitted users to share their passwords in an effort to get more people hooked on its platform.
“Our relatively high household penetration — when including the large number of households sharing accounts — combined with competition, is creating revenue growth headwinds,” Netflix wrote in its letter.
The company also announced Tuesday it will introduce ad-supported tiers to consumers over the next year or two. Betting markets will focus, not on if this will happen, but when.
Netflix Betting Props
- Will Netflix be acquired by another company before the end of 2022?
- Will Netflix offer an ad-support model before the end of 2022?
- Aaron Goldstein, Gambling911.com
