The aftermath of the pandemic for the streaming industry

Netflix, along with many streaming services, has seen a fall in its stocks value. Here is why:

Netflix reported a loss of 200,000 users at the end of the first financial quarter of this fiscal year. The "quarter" refers to a three month period, not in terms of the normal calendar we use; this quarter is defined - purely - to compare and contrast finances within a specified periods of time.

Moreover, Netflix also lost 700,000+ subscribers when it disbanded services in Russia (due to the invasion, covered here). The company did report a 10% growth in its revenue this quarter; nonetheless, there are larger issues lingering around the corner.

As Netflix's stock dropped by 24% after it reported a loss in subscribers for the first time in a decade - the entire industry felt the trend. Warner Bros. and Disney suffered drops in their stock values.

This is a probable outcome of the economy's revival post-COVID. COVID is not finished - however - the general markets are operating under the sense that it is under control. This change in attitude would also reflect in consumers - and it has. As people start to resume their original lifestyles, the streaming industry - which boomed during the height of the pandemic - returns to their original level of usage.

This, therefore, leads to a fall in the overall market size of the streaming industry. And for Netflix, it is terrible news, as it is also losing its market share. As a result, it continuously attempts to release new titles to stay competitive in the market. However, AmazonPrime, Hulu, Disney, and Warner Bros. have been winning the streaming wars.

Nonetheless, this is also just the result of one quarter. There is a high probability that Netflix can bounce back. As we must remember that the company was one of the pioneers of the streaming industry, it is stupid to rule out the idea that Netflix might have some tricks up its sleeves.

Conclusively, Netflix had a bad quarter for the first time in decade. This obviously became bad news for the entire industry, but there is nothing to worry about in the grand scheme of things. Ideally, there will be some new schemes/plans/titles which will come out to revive the giant. Only time will tell how the company will progress.