Anchored by an ever-increasing library of original content, Netflix over the last two years successfully managed to increase its subscriber base by an impressive 50%. But when it comes to all things Wall St., the What have you done for me lately? dynamic still reigns supreme. So when the streaming giant released its earnings earlier this week and disclosed that its subscriber growth over the last quarter was lower than it had ever been before in company history, investors were quick to panic. Since Monday, shares of Netflix have fallen by nearly 15%.
Part of the problem, according to Netflix, was higher than anticipated subscriber churn fueled by “press coverage in early April of our plan to un-grandfather longer tenured members.” In other words, some subscribers aren’t too keen on any type of price increase. All told, it hasn’t been the best of weeks for the company that has graced us with hits like House of Cards and Unbreakable Kimmy Schmidt.
But not to worry Netflix fans, not all hope is lost.