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Quick Tech News


by Alexander Fäh

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Why Streaming Services are crashing

Everyone probably knows Netflix, the huge movie and series provider. It was very much in demand during the lockdown, but things no longer look as good as they did at the beginning of the year. Both financially and socially, streaming services have suffered billions of dollars in damages. But why is that?

When the lockdown came, there was no possibility to go outside the house, meetings with friends were forbidden, masks had to be worn and regular disinfection of the hands was the order of the day. However, you had the need to entertain yourself somehow. And from then on, the big streaming services, such as Disney+, Amazon Prime and Netflix boomed. This also made itself visible in the financial reports of the respective companies. But two years after the lockdown, things are no longer looking particularly good for the streaming services.

The shares of Netflix, Disney, Amazon and many other companies are rising on the back of ever-increasing sales. But every boom comes to an end. The companies have published their quarterly financials and have seen a decline in sales and profits. For example, Netflix stock ($NFLX) dropped a whopping 21% in one day and is 50% away from its last all-time high. Disney stock ($DIS) is also down over 21% from its last all-time high. However, that's not because of the latest financial report, but because of the large expenses Disney made to continue offering its streaming service.

Amazon also had to take some losses. This is because Amazon had to report less revenue compared to Q3-2021 than Q4-2021, despite inflation of their subscription services. The company raised the prices in the US for their Prime subscription from $12.99 to $14.99. Still, the company made less revenue from it. That means fewer people are using Amazon's service.


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