The Netflix Growth Problem
Most of the attention on Netflix's (NASDAQ: NFLX) earnings report this week has focused on the fact that the streaming leader lost subscribers for the first time in over a decade. The company's total membership number contracted by 200,000 in the period, and in the current quarter, management expects a net reduction of 2 million more.
These results are in stark contrast to the pattern of tremendous growth that Netflix has achieved over more than two decades. But with the company reaching a degree of market saturation at 222 million subscribers, it's worth asking how it could grow over the long term from here.
The answer is... Netflix may have a problem.
Source Fool.com
