The Netflix earnings slump
After a decade of rapid growth, Netflix took a tumble over the past quarter, for the first time losing more subscribers than it signed up. Wall Street’s reaction has been swift, with the market slashing Netflix’s valuation to less than half of its value from a few weeks prior.
Many schadenfreude-fueled takes revel in watching the king of streaming take a hit, but Netflix’s downturn won’t improve film watching habits or shake up streaming’s ascendance. The availability and discoverability challenges on streaming – clunky user interfaces, ruthless algorithms – won’t improve. Mega budget streaming sites will survive. What will change are the type of shows and movies that streaming sites buy, produce, and green light going forward.
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