Is There Still A Good Reason To Subscribe To Netflix, Inc. (NASDAQ:NFLX)?

August 09, 2017, 08:55 am ET, BY Simon M.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Netflix, Inc. (NASDAQ:NFLX) is a brand that many Americans associate with providing streaming services for a majority of the most popular television shows in the country.

In the past, a Netflix subscription guaranteed the viewer a steady stream of good content in the form of TV shows from various content producers. However, this has drastically changed in recent years as Netflix has embarked on creating its own original shows, which has put the company in direct competition with most content providers.

For many Americans, Netflix was the channel that they relied on to pass their free time, while catching up with their favorite TV shows. Nowadays, Netflix subscribers are treated to a large selection of Netflix original shows that, to be honest, are not very good.

By deciding to create its own content, Netflix has dramatically changed its previous operation model, which was working well for many years. The company is placing a huge on its new original shows, but this puts it at great risk of losing many of its loyal customers.

The media industry is changing as content producers are choosing to start their own streaming services, which is a major reason why Netflix has lost many of its content providers.

The mushrooming of streaming services from many of the different content creators and providers is having a major impact on the American consumer. This is because Americans now have to spend much more I subscription fees to the different streaming services in order to follow their most favorite shows.

Yesterday, Walt Disney Co (NYSE:DIS) also announced that it would be withdrawing its popular shows from Netflix as it was launching its own streaming service. This added to the list of content providers who now operate their own streaming services including Amazon.com, Inc. (NASDAQ:AMZN) and CBS among others.

Finally, as more and more content providers start their own streaming services and platforms for airing their original shows, American consumers will continue suffering, as they have to pay more in order to access their favorite shows.

This begs the question as to whether Netflix will continue to provide value to its shareholders into the future.

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