Netflix Is Diversifying: Is That a Good Thing?
Netflix (NASDAQ: NFLX) spearheaded the cord-cutting and streaming trend over the past several years, amassing an incredible 208 million subscribers worldwide and generating $26.4 billion in revenue over the last 12 months.
But after a monster 2020 in which member growth skyrocketed, the $240 billion business added a disappointing 4 million customers in the first quarter of 2021. What's worse, it seems like the lucrative U.S. and Canadian markets are getting saturated, with only 450,000 adds in the most recent quarter.
New developments about Netflix's potential foray into video games, as well as its announcement of an online store, could be the streaming giant's admission that to achieve fast growth, new revenue sources are needed.
Source Fool.com
