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(It has since dropped another 4 percent today.)
But something changed this week.
Netflix did it first and arguably better than anyone else.
The growth curve is just so much harder for them than anyone else right now.
But there were also reports that Netflix was shifting to a more traditional i.e.
Hollywood development hierarchy while also reining in who had green-light authority in the room.
Of course, Sarandos has never been public about a need to reset the creative at the company.
The new streamers who entered the market after had no choice but to spend big too.
Netflixs growth results over the past six months prove thats not the case.
But time spent viewing doesnt measure passion how much audienceslovewhat theyre watching and feel it is essential.
But its not just that viewers have more legit streaming choices.
The mere existence of these well-funded rivals hurts Netflixs ability to buy the best content in the market.
Ditto not having advertising (though HBO got there four decades earlier).
Take the binge model, for example.
You maybe talk about the show once for 15 minutes, but thats it.
Theyre commoditizing entertainment when they end shows so soon, the competing exec told me.
Theyre making it disposable.
Theyre telling people it doesnt matter.
A company that was once ahead of the curve now finds itself playing catch-up as a result.
So What Now?
Theyre definitely looking at cutting everything, this person said.
Still, I dont think it would make much sense for Netflix to appear as if its panicking.
I dont buy into any of the darkest gloom-and-doom scenarios some Netflix skeptics continue to spread.
As one exec told me, They knew how to manage a company on a trajectory of growth.
Theyve never had to manage a company at this pace.
