HubbleBit broker assesses the open season on streaming platforms

London, UK – Streaming platforms have changed the entire entertainment industry by giving more power to consumers to choose which type of entertainment they want to consume and at what time. In short, online streaming systems have changed the way people view entertainment, and the markets have already adjusted to them.

Streaming platforms generate a lot of revenue, and their profits are directly proportional to the number of subscribers they host. Investors are normally quite friendly to streaming platforms, as signaled by companies such as Disney, Netflix, Amazon Prime, etc. These companies are the big players in the industry and have more or less taken over the entertainment markets by storm. Their subscriber count is the highest, with Netflix outranking everyone else.

The pandemic saw companies like Netflix see their stocks shoot to the skies as they were the sole entertainment providers during that duration. So it was a surprise to everyone when the markets forced Netflix’s stock to take a dip. At first look, it looks like this is an isolated incident, but a more in-depth review shows that the industry is struggling to hold on to its single advantage. HubbleBit broker Jordan Miller gives a detailed overview of the current situation in the current unlucky streak of streaming giants and how it affects the average consumer.

Victims so far

Netflix’s stock dip was one of many events over the past week. The current trend seems to be that online streaming is a liable stock, and investors need to be wary in their biding options. Financial analysts say that while the platform is still leading the entertainment industry, these current losses are not a good sign.

A similar situation came from CNN+, which launched a little over three weeks ago and was already reviewed for dismantling. CNN is a well-established company, and the fact that its streaming platform seems to have hit a bust is another nail that the industry cannot handle. CNN+ didn’t even have a chance to breathe before it was forced out due to its inability to capture an audience, and that is what it all comes down to.

Economists have always said that well-distributed resources are the best way to counter the current market changes, but at the end of the day, consumers are the ones that decide the market trend. Companies do affect them but not to the extent that would render consumer loyalty unwarranted. The problem always comes when consumers are disregarded or affected by decisions made by platforms such as Netflix.

Game plan

The problem occurred when Netflix increased its subscription fees when inflation had taken a tight grip on every consumer’s wallet. People are prioritizing their spending, and considering that the world is coming out of a pandemic, entertainment isn’t on everyone’s list of essentials. It was an unofficial priority during the pandemic when people weren’t forced to consider their daily outside driving expenses. With things getting back to normal, commodities being at an all- high, and salaries not keeping up with the inflation rate, it is safe to say that this was something that investors must have seen coming.

Entertainment was a priority during the pandemic for many people as it was a reminder of normalcy when nothing was further from the truth. It is no longer a reminder of that, and the current market just doesn’t allow for all consumers to be able to justify increasing their already stretched-out budget.

Netflix lost 200,000 subscribers in the first quarter of 2022, whereas CNN+ barely scraped the 10,000 mark. Things look rough for the markets, with millions of people reevaluating their budgets and looking into restructuring their expense reports. In short, people have bigger fish to fry than worry about how they will entertain themselves when managing budgets is one of the toughest tasks in the market.

Tasks ahead

Netflix has introduced a plan to counter this by considering other ideas, such as introducing an account option that would include ads to accommodate for the extra revenue and pull some burden off of the consumers, but this doesn’t seem to be sitting well with a lot of people who argue that it negates the existence of the platform considering that YouTube is also part of the entertainment industry.

Nonetheless, analysts believe that Netflix and other streaming platforms will be OK as market performance catches up to inflation.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your research before making any investment based on your circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether to make an investment decision or otherwise.

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