Procera Networks reports that streaming traffic on Netflix has fallen by 25% in recent days (reported on CNN Money website here). The company believes that the Olympics accounts for the decreased activity on Netflix. Indeed, Netflix has admitted that the Olympics may have an adverse effect on the firm this quarter. I'm curious as to the financial impact, as less streaming on the part of someone who still pays the monthly subscription fee doesn't have a negative impact on Netflix earnings. On the other hand, if the Olympics slows new subscriber growth, then the company has a problem.
This report makes me wonder what other firms might be adversely affected by the Olympics. Will Redbox take a hit as well? What about movie purchases and rentals via iTunes? Do people go to movie theaters less often during these two weeks? Perhaps sporting events such as minor league baseball take an attendance hit as well. What do my readers think? Any thoughts on the firms that might have a nasty financial surprise this quarter due to the two-week Olympic effect?
1 comment:
Netflix was already in the basement long before the london olympics.
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