Two Challenges Netflix Faces From Rising Competition
Netflix (NASDAQ: NFLX) shares have fallen 20 percent since the video streaming powerhouse issued its earnings report last month.
The steep drop was fueled by a slowdown in net subscriber growth. The company added 2.7 million subscribers in the second quarter, the fewest net additions in three years and well short of the 5 million additions that the company forecast.
For long-term investors, this shouldn't cause panic. Netflix has seen bigger declines in a history that has rewarded patient investors. But, like any maturing company, Netflix will face challenges as competition ramps up, including downward pressure on subscription pricing and rising content costs.
Source Fool.com
