Netflix‘s decision to raise their prices is coming back to haunt them as they seemingly took a hit on Wall Street recently. Netflix ushered in a new era of entertainment when it pioneered the concept of streaming. Its initial batch of original series like House of Cards, Orange is the New Black, and Daredevil put it on the map and changed the media landscape forever, with every studio following suit and beginning a streaming war with new platforms popping up. Despite Netflix spending billions of dollars each year on productions, they are supported by their large subscriber bases and have essentially set the terms for the streaming war. However, the stock market might hint at Netflix losing some control as subscribers are not happy with some of its recent decisions.
According to The Wrap, Netflix stock was down 4.5% a few hours into Wall Street opening up. This was just one day after its share price dropped more than 8%. Netflix’s market cap is hovering near $375 billion by midday Friday, which to a normal person is nothing to sneeze at, but for a tech company like Netflix, it is concerning. Many prominent analysts have raised concerns about the streamer’s growth amid a more significant downturn in the market, partially because of recent tariffs implemented by Donald Trump that have impacted various aspects of the stock market. MoffettNathanson analyst Robert Fishman published a research report on Thursday, warning that Netflix’s big subscriber growth could be slowing down in the quarters ahead, in large part due to the streaming giant’s crackdown on password sharing. Fishman said:
“It is likely Netflix has a few more quarters of strong subscriber growth driven by its content slate and ad-tier, but we do expect the benefits of the password-sharing crackdown to slow,”
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This is just one of many bad news headlines for Netflix as of late. Despite their film Emilia Pérez earning 13 Oscar nominations at the 97th Academy Awards, more than any other film that year, any chance it had at winning Best Picture was dashed following star Karla Sofía Gascón controversial tweet history becoming the talk of the industry. Conan O’Brien even made a point at Netflix and their large number of price increases during his opening monologue, as now a standard Netflix plan costs $17.99. Netflix’s big-budget, star-studded blockbuster The Electric State has earned abysmal reviews from critics. The library value is also taking a hit, with fan favorites like Cobra Kai and Stranger Things ending in 2025, while they cancelling fan-favorite series like The Recruit and The Sandman.
Is Netflix Worth the Price Anymore?
After being the king of streaming for years, Netflix is finally starting to feel some heat. While the initial password crackdown led to more accounts signing up, as was always the case, there would be a limit on how many people would be willing to subscribe. With Netflix raising their prices and canceling many beloved series, many have grown weary of the company and, at a time of economic uncertainty, are now likely more willing to cancel Netflix than ever before. Is it worth paying $20 a month to stream Kraven the Hunter? Or to watch the latest Netflix Original that is seemingly designed to be watched in the background while the viewer does something more productive? It is no coincidence that after years of boasting about how many subscribers they had, they recently confirmed they would no longer reveal subscriber numbers during quarterly earnings meetings.
Despite this, Netflix is still looking to spend $18 billion on content in 2025. If Netflix keeps spending like that, but subscribers aren’t exactly growing, expect to see more price hikes in the future. Netflix’s future might be looking up thanks to some high-profile releases in 2025, including the final season of Stranger Things, a new season of Squid Game, Happy Gilmore 2, and other highly-anticipated titles exclusive to the streamer. Netflix has been the dominant force in streaming for years, but it now seems like they are starting to test their luck as audiences grow tired of their increasingly controversial decisions. Times like this make the Disney+/Hulu/Max bundle worthy of consideration, or even AMC A-List’s new price increase seem like a good investment to see movies in theaters.
Source: The Wrap
