(FreedomJournal.org)- When the world went into lockdown earlier this year, people started watching more television than ever. People all over the world were stuck at home, unable to go out and enjoy themselves with friends and family, and watching TV and movies. You’d think it would be the perfect opportunity for media streaming platforms like Netflix, but their financials aren’t looking so good.
The left-wing media outlet had a horrible second quarter, with new subscriptions falling well short of expectations. It means shares in the company plummeted by 12% during after-hours trading on Thursday.
Netflix claimed heavy competitions from other online platforms was the reason for their woes, but they didn’t mention Amazon or Disney. Instead, Netflix blamed TikTok, the Chinese-owned social media app that people use to share short, comical clips with each other. This isn’t a TV streaming provider.
It’s particularly interesting as not only are people at home and watching TV, but the movie theaters are also shut. Anybody who wants to watch a movie has to do so at home, and that means either watching it on a streaming platform or buying a DVD…and who buys a DVD these days?
Netflix reported 10.1 million new subscriptions in Q2, which missed expectations from analysts by around 2 million. The company has predicted 2.5 million new subscribers for Q3, which again is way short of what analysts thought.
Wall Street considers subscriber growth at Netflix to be the best indicator of the company’s health. It relates directly to the company’s cash flow, as customers are always leaving the service too. The more new subscriptions the better the companies cash flow.
In a message to investors, Netflix said that “Growth is slowing as consumers get through the initial shock and social restrictions.” They even specifically called out TikTok’s “astounding” growth which shows the “fluidity of internet entertainment.”
The company also said that they aren’t too concerned about their direct rivals, whether that’s Amazon or Disney.
“Instead of worrying about all these competitors, we continue to stick to our strategy of trying to improve our service and content every quarter faster than our peers,” they added.
Hey, I wonder if they’ve thought about not producing super woke, far-left propaganda? If they went back to producing normal TV then maybe more people would be on board!