As opposed to traditional cable TV, streaming channels provide much more flexibility for subscribers. As a result, connections have grown explosively over the past few years. Furthermore, the pandemic plays an additional role in driving streaming services like Netflix Inc.(NASDAQ: NFLX). On the other hand, the convenience of connecting to the service implies the ease of unsubscribing from it as well.
For streaming services, it is a considerable headache to provide easy subscription methods from streaming services. The number of consumers canceling their subscriptions has grown by about 20% over the past six months, compared to 15% in 2019. Another reason is the end of a popular series (about 30% of customers cancel their subscription after the show). A similar percentage of subscribers claimed they switched to another streaming service because they discovered a show or movie that entertained them. Therefore, one of the best ways to increase your client base is to improve your content quality.
Netflix Inc.(NASDAQ: NFLX) is the strongest in content in the highly competitive streaming services market. Netflix is a streaming service that has access to enough resources to create new shows almost every week. Furthermore, the platform continues to publish complete seasons of the series at once and not one episode at a time, so there is no cause to worry that this could theoretically reduce the subscription length. By providing a wide variety of TV shows, Netflix will likely reach a large audience while maintaining a high subscription rate.
Netflix Inc. (NASDAQ: NFLX) closed the last trading session at $498.34, up 1.20% or $5.93. The stock price ranged between $490.15 and $501.80 during trading. 3.2 million shares changed hands, a lower volume than the company’s 50-day daily volume of 4.15 million and less than its year-to-date volume of 4.46 million. Over the past year, shares have declined by 11.29%, and in the previous week, shares have advanced 2.27 %. For the last six months, the stock has lost a total of -4.12%, and over the last three months, the stock has decreased by -1.28%. In the first half of the year, the stock returned -7.84%. Further, the stock’s price-to-earnings ratio stands at 61.78.