In early to mid of March 2022, Netflix’s stock was sunk to its lowest point since the start of the COVID-19 pandemic in March 2020. Investors continuing to sell shares of the streaming service as it faces slower growth on subscriber numbers and more competition from rivals.
Netflix saw significant gains during in 2020 and 2021 as consumers were stuck at home under various restrictions. Netflix’s business boomed in 2020 due to social restrictions that forced people to stay home.
Despite the lesser restrictions might have some effects on the company business, the increasing competition also become one important factor that affect company growth.
In the last few years, we have seen the surge of streaming services. A lot of major media companies completely building new line of business to capture a bit of Netflix’s surging business. We have Disney Hotstar, HBO GO or HBO Max, Amazone Prime Video, Apple TV, Funimation, Crunchyroll and more.
Not forget to mention some competitors from Asia such as Viu, iQiyi, Tencent, Naver TV, Hooq and many more. Lot of companies accelerated their shift to streaming to grab the potential market especially due to pandemic situation.
The economic reopening is a factor that affects Netflix growth and of course other streaming services as well. In addition to more competitive market, the economic reopening that allows cinema to reopen, have bring people back to cinemas. We have seen ‘Spider-Man: No Way Home’ and ‘The Batman’ enter box office and more to come.
The streaming services might be one of the best answer for entertainment during pandemic that we can enjoy from the comfort of our couch. Even now, when restrictions are slowly lifted, streaming services will not go out of trend. It just faces a stronger competition from the lively market.
Streaming services need to keep up its game and offering to keep their position during these soon-to-be normal times. Despite it is no longer one of the best answer for entertainment, it is still a good alternative to have. From one of the best medium to alternative choice, the normal times have bring down the status of streaming services.