Netflix is Dead, Long Live Netflix!

Chances are you’ve already seen the plethora of articles surrounding Netflix’s drop in share value and subscribers but in case you haven’t then, in a nutshell, according to Teh Interwebz Netflix is dead. A loss of subscribers for the first time in 5 years, $16 billion wiped off their stock market value, the upcoming Disney+ and other streaming services that will kill off Netflix… I may as well pack up and end New on Netflix and save myself a load of time and hosting costs.

However…

Let’s just have a look at the details surrounding Netflix’s announcement and what they actually mean:

Loss of Subscribers

Most news outlets are reporting on the fact that Netflix lost subscribers for the first time since 2011. The truth behind this is that they lost 126,000 subscribers from in the USA – not all over the world. In Q1 2019 Netflix reportedly had 60.23 million subscribers in the USA (source) so this ‘mass exodus’ of subscribers in this latest release is a fairly paltry 0.21% drop.

They also gained 2.7 million new subscribers around the rest of the world. So, while this still didn’t meet their estimated 5 million new subscribers, it is still proof that they are growing and not in decline.

What could have caused the loss? This is all speculation but it could be related to the recent US price increase or the fact that Netflix are separating their disc delivery and streaming services. At the end of the day no one knows – but if you or a friend has unsubscribed in America recently I’d be interested to know the reason(s).

$16bn Devaluation

News of these subscriber targets not being met resulted in $16 billion being wiped off the value of the company. This is, of course, a ridiculously large amount of money but, when put in context, Netflix is still valued at $142.2 billion – an insane amount of money. Furthermore, as reported by CNBC, this value is still a 21% increase from the start of the year. Hardly a sign of a company in decline.

But What About Disney+?

Flippant answer: what about Disney+?!

Fuller answer: There are lots of news articles around claiming that the upcoming streaming services Disney+ and WarnerMedia’s HBO Max etc will be the end of Netflix. Personally I don’t think it will really make a difference as there have already been stats released showing that most Americans already have multiple subscriptions to streaming services anyway so why would that change? There will be different content on the different streaming services so users will pick and choose what they want and, with the ease of cancelling/resubscribing it’s more than feasible that users will swap and change depending on what they want to watch and when. I already do this with NowTV – I’ll subscribe for a month or two to catch up on The Flash or The Walking Dead but then cancel again.

Netflix Worldwide

Another thing worth remembering is that these streaming services, at present, are US-only so most of this scaremongering makes little to no difference to the majority of the world. In the UK we have had Disney Life for a few years. Guess what? People still subscribe to Netflix (and Amazon and NowTV…).

In America it is true that in order to get all the content you want then you may have to subscribe to a few more streaming services and the total cost may be a bit extra, however for the rest of the world it is likely that HBO and other shows will end up on other streaming services in the same way that “Titans”, “Riverdale” etc are branded as Netflix Originals outside of the USA because there is no HBO or DC Universe outside of America. They’re going to want to make some money from their content with worldwide deals with the likes of Netflix, Sky and Amazon. With this in mind, it is highly likely that Netflix will continue to focus on their worldwide market – something that many American news sites seem to forget about – and keep growing their content slate and subscriber numbers this way.

About MaFt

Film and TV fan, creator of New On Netflix (UK, USA, Australia and Canada), dad of two amazing children, code geek and passionate about autism.

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28 thoughts on “Netflix is Dead, Long Live Netflix!

  1. I think in the States they have been used to having a lot of Disney stuff on their version of Netflix and then it was all taken away because of the upcoming Disney + service. But we’ve never really had that content on our Netflix. Netflix is the only service I’ve signed up to that I’ve never cancelled. Amazon is rubbish and now TV is good now and again for certain shows and movies but I happily drop them afterwards.

  2. I really only have Netflix for kids and the odd series for me , amazon for me seems to be growing and getting better and better . All depends on Disney + and if and when it comes to uk

    1. I agree with this and also this isn’t a bad thing necessarily either. Eventually it will be Amazon Prime Originals + Netflix Originals +HBO Originals + Disney Originals. I think this is what these providers ultimately want. Weekly episodes to keep you subscribed longer too!

  3. Since all the marvel shows have been cancelled on netflix loads of american subscribers have boycotted it and left. Once stranger things ends they will lose a lot more.

  4. Netflix certainly has some challenges ahead, but “Dead” I don’t think so. They just need to reorganise like most businesses. All Netflix has to do is concentrate on its “Originals” and supplement with 3rd party. If the original content is good then people will still subscribe as it will be exclusive. Same as every other OTT Network.

  5. I have been with Hulu for the same amount of years I have been with Netflix. Netflix increased their fees so many time I can’t count! I still pay the same price for Hulu I paid years ago. Maybe these price increases aren’t helping your cause

  6. With the news of britbox being £5.99 HD compare to Netflix £8.99 HD well I will be going over to that with all the classics content classic doctor who , dads army etc plus with Disney + which sounds might be cheaper again then Netflix these too I will be switching in near future , less Netflix reduce its pricing and compeat with these to I might stay .

  7. Mines being cancelled this week. To put it up by £3 then to let certain sky subscribers have it for £3 is taking the piss. They can stick it where the sun doesnt shine.

  8. Being in the UK we get maybe 10% of the movies/TV shows the US gets. When Disney and BritboxUk launch then im going to end my subscription as there will be nothing of value to watch .

  9. Wait until Disney+ actually launches , right now it’s only the more savvy users dropping it ahead of the launch , once it’s live and the cross marketing blitz begins…. I feel that other than Stranger Things / 13 Reasons, nothing they’ve done as a show is that different. Amazon has Man in high castle and Mr Robot, Jack Ryan etc , though I think Amazon will take a hit once Disney launches as well.

  10. Tbh america is the problem. All the channels like CBS and that want their own individual streaming services…yet its content gets sold to netflix or prime for worldwide distribition…hence why internationally speaking its doing better

  11. Our family has subscribed to Netflix for many years. We even maintained a long list of shows we really enjoyed and sent it out to friends. We are particular fans of well-crafted mystery series of the sort the Europeans (and UK) do so well. However, we have all noticed a sharp decline in the numbers of these series and/or long time lags in bringing the most recent season of the series to Canada. As a result, we now use Britbox, Apple TV and premium channels like HBO for more and more of our viewing.

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