Hollywood is bracing for impact: Netflix financial results on Tuesday could become a defining moment for the entertainment industry’s multi-billion dollar streaming arms race.
The streaming giant reported its first quarterly subscriber loss in more than a decade in April, and warned there’s about 2 million more global customers to go. The reaction was swift, with Netflix stock cratering 70% this year to wipe out billions of dollars in market value – and unleashing a wave of fear that studios might need to reconsider prioritizing streaming over legacy businesses like television and theaters.
The shock erosion of Netflix’s 221.6 million global subscriber base has both Hollywood and Wall Street on edge.