Netflix has announced that it lost more than a million subscribers in the first half of this year... but says it's 'not that bad'.
👉 Background: Netflix has been struggling with a capital S this year. First it announced it had lost 200,000 subscribers in a quarter... Then Netflix announced ads for the first time ever... Then it released a Resident Evil series that got a 22% rating on rotten tomatoes.
👉 What happened: Now Netflix has announced it lost more than a million subscribers in the first half of this year. But its message for investors is that it could have been worse!?
👉 What else: This massive loss is actually less than expected by investors and Netflix's shares climbed 12% on the news. And it looks like these results have a lot to do with the way it plans to release new series' in batches.
💡Netflix invented the binge model of streaming, but the industry has slowly realised that it doesn’t make economic sense.
💡The binge model is when a streaming service drops an entire ready-to-watch series in one go, like when Netflix dropped House of Cards back in 2013. It's a great subscriber experience, but then most subscribers have little incentive to stick around.
💡That's why a lot of newer streaming services like Disney+ have embraced an episode-by-episode model. So fans will have to stick around…which means more monthly subscriptions and more revenue.
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