Are you interested in the entertainment market? More specifically, are you interested in Netflix stock? If so, you might want to pay close attention to the following: On Monday, September 25, Netflix, Inc. (NASDAQ:$NFLX) shares dropped more than 4% in midday trade. Why? The decline began after Recode announced that Twenty-First Century Fox (NASDAQ:$FOXA) is adding more inventory to its FX+ streaming service.
It seems the move frightened investors, as it marks yet another step in big studios reclaiming their old shows from streaming rivals, thus pushing the company’s stock towards its worst day since November of last year. Even though Netflix carries FX’s most popular show, “The People v. O.J. Simpson,” Fox now holds every season of its 31 original FX productions on its FX+ streaming service.
This is not the first time confidence among Netflix investors has quivered. On August 9, investors were spooked when Disney (NYSE:$DIS) disclosed that it will be removing its movies from the streaming service in 2019. Why? They want to start their own direct-to-consumer streaming service.
It is important to keep in mind that Fox’s move will cater to paying TV customers – but at an additional cost to the TV packages they have already purchased. Additionally, Fox has yet to say if or when it would remove its current offerings from Netflix.
Featured Image: twitter
