Do Amazon and Disney Have a Netflix Problem?
Netflix (NASDAQ: NFLX) has yet to recover from the shocking drop in subscribers in the first quarter. Not only was its stock crushed, but it also announced layoffs at its Tudum division, which it just launched in December. It also said it would crackdown on password sharing and put ads in a new, lower-priced subscription tier. All this is generating talk of the streaming service becoming a takeover target.
It was a sea change in how people view Netflix's position in the streaming market, but with Warner Bros. Discovery pulling the plug on its ill-advised CNN+ service less than a month after it launched, Alphabet's YouTube seeing a slowdown in ad revenue, and surveys showing fewer consumers subscribing to at least one service, it may be time investors in Amazon.com (NASDAQ: AMZN) and Disney (NYSE: DIS) consider whether they need to be worried, too.
Streaming fatigue may have finally arrived, and we may see consolidation occur.
Source Fool.com
