Netflix Might Not Survive Its Latest Loss (And It's Not for the Reason You Think)
The introduction of new streaming platforms has led multiple studios to pull licensed content from Netflix (NASDAQ: NFLX). While the company's loss of 200,000 subscribers in the first quarter of 2022 shook the streaming world, here's why continued losses of licensed content could be equally detrimental to the company.
Increased competition in the streaming industry has hit few companies as hard as Netflix. The company previously enjoyed years at the top, controlling the majority of the market share. As a result, numerous studios and networks were eager at the chance to showcase their content via licensing deals with Netflix. However, times have changed.
January 2020 marked a defining moment in the streaming industry when the NBC sitcom Friends left Netflix. Then, exactly one year later, the equally popular NBC sitcom The Office also left the service. The shows represented the first and second most-watched series on the platform before their departure, both heading to their parent company's streaming services -- The Office to NBCUniversal's Peacock and Friends to WarnerMedia's HBO Max.
Source Fool.com
