While the executives at Netflix will be happy with how good “Stranger Things” season 3 is doing, they will always be scratching their heads after news emerged that the streaming giants lost as much as 130, 000 subscribers in the second quarter of the year.
That number, scary as it looks appears even scarier considering the fact that this is their first major hit since they started the platform and revolutionised film.
This may be bad news for the executives in the company as well as investors but there are certain quarters where this information will make a smile break out.
Since Netflix emerged, a lot of filmmakers and studios have had issues with them as well as the pull they have or, now, had on customers. If that grip is loosening, those who were angry about it in the past can only hope it continues.
It may not yet be time for investors to panic though. Companies have the highs and lows and no investor worth the tag will bolt at the first sign of trouble, but all hands will be on deck to ensure that the success being recorded with the “Stranger Things” and other movies being released is sustained and translates to customer retention.
The CEO, Reed Hastings does not believe they lost customers to other streaming platforms but thinks the loss may be due to changes in prices in some regions.
According to him: “We don’t believe competition was a factor since there wasn’t a material change in the competitive landscape during Q2, and competitive intensity and our penetration is varied across regions.”
It will be interesting to see how the streaming platform pick up from here but we will keep you informed about it.