Movie streaming giant Netflix suffered a considerable amount of losses just a few days ago when it launched its second-quarter reports. In the results, it indicated that Netflix lost more than 126000 subscribers in the last quarter and suffered a massive amount of losses. Netflix is trying to manage the business by making original content, but that’s costing a considerable amount of money. Netflix is soon going to lose its popular series like Friends and The Office, which is going to affect negatively on the company’s subscription base. The streaming war between Apple, Disney, HBO and Netflix are getting quite interesting because this poor quarter results of Netflix also brings unfortunate news for these companies.
Disney and other tech companies are trying to enter into movie streaming industry, which means there will be a tremendous amount of competition among them. One of the leading causes of unfortunate result for Netflix’s poor result was a price hike. Netflix hiked the prices of its essential subscription for US-based customers from $11 to $13. Netflix managed to get more than 2.7 million new users, which were far less than analysts prediction of 5 million. Now experts are predicting that new players into this industry will have to take care of prices. Disney and Apple are putting a tremendous amount of money for building their own movie streaming business.
Disney is trying to dominate this industry by launching a much broader and cheaper platform for users. Disney+ is going to be available for users by the end of November 2019. However, some experts think this is just a temporary hard phase for Netflix, and they are going to post good results in the next quarter. However, it will be interesting to see how new players are going to manage in this ongoing competitive industry.