Corporate Greed Backfires for Streaming Giants Roku and Netflix As Cord-Cutters Seek Other Alternatives

Roku and Netflix Stock Crash Shows a Disturbing Trend for Streaming TV Companies

If you own Roku or Netflix Stock, checking your portfolio recently is quite depressing

Roku Stock is trading at one quarter its price, from an all time high of $479 in July 2021, to a stunning 75% drop, and currently trading at $92. Netflix is facing its own record subscriber loss. At this time, their stock is down from an all time high of $690 on Oct 1, 2021 and is now trading at $190 a share.

What Caused this Mess?

There were several factors at play, but one of the biggest reasons for this route is corporate greed. As fans of Roku and Netflix, we watched them grow from tiny niche players to the major streaming TV powerhouses that they have now become.

But along the way, they made some business decisions that negatively impacted their companies to their most ardent fans.

One only needs to look back in time when it comes to media streamers, Apple in the early days was clearly number one in media streamer sales. This was at a time both Netflix and Roku were just getting started in the streaming TV business.

Apple TV was the streamer of choice for many early cord-cutters. And it was not because you could buy movies and TV shows from iTunes, this never really took off. No, it was because cord-cutters were able to jailbreak these devices and install XBMC to watch almost any content from the internet in more video formats. XBMC was the forerunner to KODI.

Apple did its best to clamp down and shut down jailbreaks on its platform. Because they really wanted cord-cutters to stream their own paid content instead of using boxes that they paid for to watch content they did not control. Their reasoning was it would increase sales on iTunes which would make them even more money. Eventually, they succeeded and Apple TVs no longer could be used for anything other than content on the Apple Store. And that's when they shot themselves in the foot.

Along came Roku with a new streamer that only had limited content, but unlike Apple, Roku did not restrict their media players allowing developers to add private channels which Roku at the time did not police. Channels like XTV and Nowhere TV had the Roku community buzzing. Until Roku decided to shut these channels down.

Cord cutters flocked to Roku at the time with many subscribing to Netflix because they were a much less expensive streamer than an Apple TV. And at the time Roku made their media player far less restricted. Since Roku was a much more open platform with private channels, you could watch a lot of free content from the Internet. And Roku also had one other big advantage over any other streamer, that was a huge selection of private adult porn channels. The Porn Industry flocked to Roku and created and built a long list top quality Adult TV channels.

For many years, Roku allowed private channels, while growing their streaming TV business like nothing before until they shut private channels down this past February. In October when they made their announcement that their private channels would be discontinued, their stock had already fallen from its high of $479 in July to $344.

Maybe it was a knee-jerk reaction, to their falling stock price, or they were pressured to remove porn from their platform. We don't know what motivated them to make this decision. But what this did is it gave cord-cutters one less reason to choose Roku as their streamer of choice. Fortunately, today there are many other streaming platforms to choose from including Android which remains fully open to any content from the Internet because they allow sideloading apps, to Apple TV which is also restricted but less so now than Roku.

Meanwhile, Netflix Has Its Own Share of Subscriber Issues

Netflix was once the streaming TV service of choice. And early on they dominated the industry because they had no competition. Other content providers all had their content on Netflix, and for under $10 a month you could watch unlimited content from all the major studios on their platorm without commercial inturruptions.

That was until corporate greed took over and these same TV content providers wanted to duplicate what Netflix had built. So they pulled their content from Netflix in favor of their own platforms. This left Netflix needing to create their own original content to keep subscribers, who were watching their favorite shows leaving, while prices kept creeping higher to pay for this more expensive original content.

Struggling to Climb Their Way Back to the Top

Both Roku and Netflix are scrambling to find their way back to where they once were. Recently Roku has begun advertisng with radio ads, which is something you never heard before. Netflix is looking at adding ads to their lower cost plans. And want to begin cracking down on password sharing. This could backfire as will furhter price increases, driving even their most loyal subscribers into the arms of lower cost streaming services which don't show ads like Apple TV+ or even in favor free channels which do show ads.

Inflation Has Also Had a Large Impact on Streaming TV

Amercians and much of the world is reeling from something they have not seen since the 70's. Inflation is back and it's brutal. Disposable income is no longer is being spent on entertianment, instead it's now being spent on record high gas and heating costs, along with rapidly increasing prices on food, clothes and everything else.

Other streaming companies, who once thought it was a wise move to start their own streaming companies instead of supporting Netflix with their content are experiencing their own losses. CNN+ only made it a month as its own streaming channel until owners pulled the plug due to lack of interest. Consumers fed up with rapidly increasing prices and too many choices are pulling back their spending on television entertainment. This undoubtedly will lead to more mergers and corporate buyouts. That's what just happened to Twitter. You can't run an unprofitable streaming TV company for too long before either subscribers, investors, or company owners decide to pull the plug.

There is Still Plenty of Free TV to Be Had for Cord-Cutters.

Desperate times require desperate measures for cord-cutters. Turning from paid streaming TV services to free channels has never been easier.

Sign up for Puffer TV to stream live Network Channels!

Fortunately today, like never before there are some great free streaming channels to choose from that feature full-length legal movies and TV shows with ads.

Here are some great resources to help you find FREE television content on Roku or other media streamers:

- Free Roku Channels

- Free TV Streaming Channels for Android, Apple TV, Fire TV, and Roku.

- Free Web App to Find TV Online

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