Netflix Subscriber Growth Drops Despite High Earnings

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. on-demand / ɒn dɪˈmænd / (adj) – being available whenever it is needed
    Example:

    Luke subscribed to an on-demand TV service.


  2. dismiss / dɪsˈmɪs / (v) – to ignore; to not give attention to something or someone
    Example:

    The police dismissed his complaint because he did not have enough evidence.


  3. set one’s sights on / sɛt wʌnz saɪts ˈɒn / (idiom) – to have a goal to achieve something
    Example:

    She has set her sights on working in an international company.


  4. taste / teɪst / (n) – a like or dislike for something; a preference
    Example:

    His taste in music is different from mine.


  5. binge-watching / ˈbɪndʒˌwɒtʃ ɪŋ / (n) – the act of watching movies or TV episodes one after the other
    Example:

    Binge-watching is what I like to do on weekends.


Article

Read the text below.

On-demand television service company Netflix failed to reach its target number of subscribers, causing investors to be alarmed.


Netflix reported high earnings, but only gained 4.95 million subscribers in the first quarter of this year. This is significantly lower compared to its subscriber growth of 7.05 million in the last quarter of the previous year.


However, the company dismissed the bad news. Netflix stated in a report that this does not worry them because they are confident in the steady growth and increasing popularity of Internet TV.


The US-based company is fast becoming a global entertainment network, with majority of its new subscribers living overseas. Because of this, Netflix is now setting its sights on reaching out to a global audience by providing diverse content.


It is now investing in films and shows that would cater to audiences with different tastes in entertainment.


Diversity in content is one of the many reasons why Internet TV is gaining popularity. It allows people to enjoy high-quality content produced both in the United States and from all over the world.


Moreover, services like Netflix give their users the advantage of convenience. Subscribers can watch all the episodes of their favorite shows whenever and wherever they want. Missing an episode or waiting for the next one is no longer a problem.


These advantages have given way to the culture of binge-watching, or watching shows and episodes one after another. As a result, Internet streaming services are growing in number and more tech companies are opening their doors to this business opportunity.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Are services like Netflix popular in your country? Why or why not?
• In your opinion, what are the downsides of the popularity of Internet TV?

Discussion B

• How is the Internet changing our TV-viewing habits?
• Do you think Internet TV shows will completely overtake regular TV shows in the future? Why or why not?