It is a very important time for Netflix. That is because the massive streaming service will soon be facing more competition than it ever has before in its history. The company is used to dominating the streaming industry around the world. However, those days might be coming to an end. That is because Disney, Comcast, Apple, HBO and several other large companies are jumping into the streaming business. This is good news for consumers. The amount of competition means that prices should stay low. It also means there is a large amount of movies and shows to watch.
The thing that many investors are looking forward to is the quarterly earnings report that will soon be released by Netflix. There has been a lot of speculation that Netflix might have experienced another large number of lost customers because those people are switching to a different service. Needless to say, losing a lot of subscribers would not do wonders for the price of the Netflix stock. The price has already been going down steadily. However, it did see a bit of a rise when Goldman Sachs said that they believed Netflix would be able to survive all of the competition that it will soon be facing.
The earnings that Netflix releases will give investors a look at what might be in store for the streaming giant down the road. There is no question that growth for Netflix is going to be harder than it has ever been before. This is not only due to the massive amount of choices that consumers have. There is also the fact that Disney has now officially banned Netflix from advertising on any of the TV channels that it owns. This will mean that Netflix will not be able to advertise to millions of people that it could before.
Consumers will not be paying for all of these streaming services every month. Therefore, which ones will they choose? How much will they be willing to pay for them? These are the questions that nobody knows the answer to right now. It stands to reason that people will be willing to pay more for streaming services that have more content. The quarterly earnings report from Netflix will let investors know if they should have faith in the value of its stock rising in the near future. There is a lot riding on this. It will be interesting to find out the details of the report.
