The streaming war has its first victim – a less-than-expected subscriber base for the Big Red, Netflix. The company did make more money than expected – 40 cents per share instead of the projected 37 – but the path forward seems a bit tricky. This comes from a report that the company put up about its first quarter earnings.
The projected number of subscribers was 98.93 million, but the actuals were 98.75 million. The difference between the two numbers might seem trivial, but subscriber base is a key metric for any media company. The report bumped the streaming behemoth’s shares down, but only for a little while.
This is just the tip of the iceberg of the troubles that Netflix faces. It also faces the problem that all startups face – cash burning. Netflix upped the ante for everyone with an incredible investment of $6 billion for new content.