With the emergence of new streaming services, such as NBC’s Peacock, becoming available, I’ve been curious to see how long-standing streaming services, like Netflix, will be impacted. According to CNBC, Netflix’s stock slipped down about 7% recently. After some research I learned that for streaming services, a lot of how stocks perform is based off of subscriber growth. Factoring in new streaming services entering the market might be part of the problem for Netflix, but it’s also worth contemplating if the show production halt due to Coronavirus has also had an impact on Netflix stocks. At the same time, though, I’d assume this is something all streaming services are struggling with (production/output of new content). You could also make the argument that COVID-19 would also work in their benefit though as people are trapped inside more often than a usual summer. Seems like, at the very least, we will not have to worry about Netflix raising their prices any time soon as all these competitors continue to emerge.
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