The shift in the way people watch television has been good for the company, but the news on April 19 that it would lose 2 million customers in the second quarter made it a pariah in the market. The company's market value plummeted as investors worried about the future of the company. The company will do everything from cracking down on password sharing to rolling out a lower-priced service with ads, both measures that the company had avoided in the past. We asked the media and entertainment writers at the news agency to help us understand what happened.
After the subscriber count announcement, the stock took a huge dive. Competition, the rising cost of content, and saturation in larger markets were well known, why were investors suddenly taken aback?
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