Netflix Stock Drops After ‘Arrested Development’ Debut

Arrested Development Netflix

Internet streamer’s shares fall 6.4% Tuesday after premiere of 'Arrested Development' season 4, which failed to impress critics

Netflix shares fell more than 6% Tuesday after the company’s hyped debut of “Arrested Development” on Sunday, which failed to impress critics.

The broader market surged Tuesday after the Memorial Day weekend break, with the Dow Jones Industrial Average climbing 1.15% and the S&P 500 up 1.12% in morning trading. Netflix shares opened up 3% before falling in early trading, and closed down 6.4% Tuesday to $214.19 per share.

Netflix executives have had high hopes for the return of “Arrested Development.” CFO David Wells, at an investment conference earlier this month, said the series — with its rabid cult following — could help Netflix avoid a year-over-year decline in second-quarter subscriber additions.

But TV critics, who did not receive the ability to view the series ahead of the Sunday premiere of all 15 episodes, were generally underwhelmed with the fourth and likely final installment of the comedy.

Variety’s Brian Lowry said the “revival plays a bit like a reunion special, where the individual cast members come out and take their curtain calls” but ultimately “nobody really has much to say.” Following the seven-year hiatus after Fox canceled “Arrested Development,” the show at its worst is “reduced to doing [a] shaky imitation of itself: the characters and themes are there but the beats are slightly off, as is the tone,” Nathan Rabin wrote in The Wall Street Journal.

And The New York Times’ Mike Hale said fans of the show would be disappointed in the final “Arrested Development” entry, in which “everything feels slowed down and dragged out at the same time that it feels forced and overly complicated.”

“Chalk one up for the Internet: It has killed ‘Arrested Development,’ ” Hale opined.

Some reviewers, however, loved the Bluths’ return on Netflix. “Arrested Development” season 4 “proves that there is still hope for sitcom genius from the TV industry, especially if it’s created by Mitchell Hurwitz, narrated by Ron Howard and features one of the greatest ensemble casts of all time,” The San Francisco Chronicle’s David Wiegand wrote.

Netflix does not release viewing metrics for individual shows. While execs have talked up original and exclusive content as a key component to the service, CEO Reed Hastings acknowledged on Netflix’s first-quarter 2013 earnings call that series “House of Cards” had only a “gentle” effect on total subscriber additions.

SEE ALSO: Netflix ‘Arrested Development’ Watermark Gag Causes Confusion

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 8

Leave a Reply

8 Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

  1. Phrasing says:

    Yeah, the stock dropped because of Arrested Development. I’m sure it had nothing to due with that fact that, after losing more and more of their library, Netflix has recently made it difficult to see when licenses are expiring for their streaming content because…oh, no reason, everything’s normal, please keep subscribing!

  2. D says:

    you cant say season 4 is as good as the first three but it was still awesome! it actually felt sort of like serenity to me, if you were a big fan of firefly the movie was great and provided closure but if you didn’t like or never saw the show to begin with it was not meant for you…..

  3. Terrence Aybar says:

    I read a “critic” review that said they gave up after two episodes. Seriously, now.

  4. Alex B says:

    It’s in TV critics best interests to pretend this is all a failed experiment, because Netflix is attempting to shake up the paradigm that most critics are used to.

    I don’t see any real evidence that Arrested Development’s new season was as poorly received as they want it to be. It has been all over new media with glowing, exuberant responses. However, I’m guessing that those are sources that these stodgy critics don’t have the best command or understanding of.

  5. Alex B says:

    It’s in TV critics best interests to pretend this is all a failed experiment, because Netflix is attempting to shake up the paradigm that most critics are used to.

    I don’t see any real evidence that Arrested Development’s new season was as poorly received as they want it to be. It has been all over new media with glowing, exuberant responses. However, I’m guess that those are sources that these stodgy critics don’t have the best command or understanding of.

  6. Kyle K. says:

    Development Released.

    This show is fine for a continuation of a long-hiatus. Uppedy TV critics would make the ocean boil on a cloudy day.

  7. So you take a few reviews and say critics haven’t taken to it, when if you actually look around the internet the majority that I have seen really have. Using a small sample size doesn’t exactly help your case, especially when it’s not really the truth.

  8. Frank W says:

    I didn’t see any comments by fans that say it was bad–only about the watermark gag and those that got it loved it. The critics do not buy NetFlix, so really their opinion doesn’t really count, it’s the fans–and after all it was a niche show to begin with.

More Digital News from Variety

Loading