It’s the original king of streaming television, it’s winning Emmy Awards, and it’s about to release its first feature film, but nevertheless, the bloom may be off the rose for Netflix: The company’s latest earnings reports reveal that its profits have plummeted by 50 percent compared to last year. Shares in the company are also dipping thanks to the news that the company is adding new subscribers at a depressed pace—a fact it blames on “involuntary churn” around the introduction of new chip-based credit cards, but which might have more to do with its increasing competition from Amazon and Hulu.
In terms of streaming networks, which seem to represent the future of home TV and film viewing, Netflix remains the most visible brand. Its original programming, which includes Orange Is the New Black, House of Cards, and Daredevil, has become crucial to maintaining its subscriber base, but is also very expensive to produce, while deals securing rights to first-run movies have also become more and more costly. The company still made $29.43 million in its last quarter (against a forecast of $31 million), but that figure is considerably less than the $59.29 million it made in the same period in 2014.