The latest difficulties may not be the beginning of the end for the streaming service. Instead, it’s a sign that Netflix is increasingly becoming a traditional media company, Frank Pallotta wrote in his article.
Wall Street once valued the company at around $300 billion — a number equal to many tech companies, although Julia Alexander, chief strategy officer at Parrot Analytics, said Netflix was greatly exaggerated.
However, Netflix was never truly a technology company, as Frank Pallotta emphasized. True, it has relied on subscriber growth like many other companies in the tech world, but the company’s business strategy is closer to the Hollywood studio than to tech company Silicon Valley, according to a CNN Business article.
Netflix began sampling from other companies, this is indicated by the fact that ads appear on the platform and some media content is released not at once, but over the course of weeks and months – in the case of the Hungarian series, not all parts will be immediately available. Netflix has also said that cheaper subscription plans and a crackdown on password-sharing may come next year. Meanwhile, it is involved with Microsoft in the field of advertising.
In many ways, I think Netflix’s moves mark a transition from a tech company to a media company. Netflix feels more like a traditional media company every day
said Andrew Hare, Senior Vice President of Research at Magid for CNN Business.
