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Netflix Takes A Beating In Q3 Earnings Thanks To Streaming Rivals

Roshan Dwivedi Published on : 15 October 2015
Netflix Q3 2015 Earnings 50% Dip Profits


Netflix will always be the pioneer of streaming TV and today with its Emmy wins and its’s upcoming original release ‘Beasts Of No Nation’, it is clearly the most visible brand in the digital entertainment industry.

The recently out Q3 earning however fail to translate the popularity in to numbers. A 50% drop in profits and dipping shares can never be good news and absolutely not for Netflix that is the talk of the town for taking on Cable and expanding to 100+ odd countries by 2020.

Netflix has pasted the blame on chip-based credit cards for the low numbers but let’s face it ; WHO ARE YOU KIDDING? Look at the Amazon and Hulu growth numbers? Isn’t that a valid sign that some serious competition is unsettling Netflix?

To be fair to Netflix, it did well in terms of programming with shows like Orange Is the New BlackHouse of Cards and Daredevil, which have also become instrumental in retaining its customers. But they are expensive to produce with a single episode’s value running in to millions of dollars. Deals securing rights for ultra-VOD release of movies has gotten much more expensive and has likely contributed to the low profits for Netflix.

In terms of competition, video streaming platform Hulu has poached the Epix deal after Netflix dropped it in search for original programming and Amazon has not only adopted the binge model that once Netflix made popular, but also allowed subscribers to download for the paid content.

Will Netflix still tell us that the chip based credit cards are bigger foes than competitors?

Written by: Roshan Dwivedi

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