Streaming pioneer (NASDAQ: NFLX) was long considered by viewers to be the best streaming option available due to its vast library of original and licensed content.

But as the cord-cutting trend has become more mainstream, a vast number of competing services have been launched, many by entertainment giants with their own massive quantities of high-quality intellectual property. Also, Netflix's licensing rights for some popular shows and movies are returning to their original owners. As a result, and with competition surging, Netflix has been forced to seek growth from other sources.

For the last several years, the company's revenue growth relied on big investments in original content to entice people to subscribe, along with recurring subscription price hikes. However, many competing platforms also offer original content, and raising subscription prices too much carries the risk of inducing a mass churn among subscribers.

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Source Fool.com