According to the perma-bulls, Netflix (NASDAQ:NFLX) made a brilliant move in adding commercial-supported membership tiers recently. However, NFLX stock is still far from a real recovery, and Netflix management’s latest ideas aren’t a guarantee of success. Even the much-touted ad-supported service strategy could backfire.
People sometimes call Netflix the streaming king, but this is now a crowded field. Netflix’s competitors are nipping at the company’s heels and threatening to steal market share.
Perhaps this is why Netflix’s management wants to try out new ideas. Investors might be encouraged by this, but be careful.
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