×

Netflix Stock Drops After ‘Arrested Development’ Debut

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

More Digital

  • Crunchyroll Kun Gao - Joanne Waage

    Crunchyroll Co-Founder Kun Gao Moves Into Advisory Role, Joanne Waage Heads Anime Service as GM

    Kun Gao, co-founder and former general manager of Crunchyroll, has stepped aside from day-to-day management of the anime-streaming service, which is now led by general manager Joanne Waage. According to a Crunchyroll statement, Gao remains “very much involved” with the service as an adviser and is “continuing to work on several projects.” In addition, Gao [...]

  • Charter Communications logo

    Charter Reaches $174 Million Settlement on Internet-Throttling Fraud Suit

    Charter Communications agreed to a settlement valued at $174.2 million to resolve a lawsuit alleging the U.S.’s second-biggest cable operator defrauded broadband customers by failing to deliver promised internet speeds. According to the terms of the settlement with the New York Attorney General’s Office, Charter will pay $62.5 million in direct refunds to 700,000 active broadband [...]

  • Facebook Logo

    #LogOutFacebook: NAACP Calls for Boycott, Civil Rights Groups Demand Board Changes

    The NAACP is calling on Facebook users to take part in a one-day boycott of the social network this Tuesday to pressure the company to do more against disinformation and racial discrimination. Separately, a coalition of about three dozen social justice groups called on Facebook to remove key executives from its board of directors. Facebook [...]

  • Westworld Season 2 HBO

    Facebook Has Talked With HBO, Showtime and Other Networks but It's Unlikely to Proceed With Pay-TV Idea

    Is Facebook about to become cable TV provider? Don’t bet on it. The social giant has held informal discussions with cable networks including HBO and Showtime Networks about potentially offering subscriptions to their streaming services on Facebook, multiple sources tell Variety, confirming a Recode report last week that first reported the talks. However, Facebook currently [...]

  • Ed Sheeran Shape of You

    Ed Sheeran, Clean Bandit Top Shazam’s 2018 Year-End Lists

    Clean Bandit and Demi Lovato’s song “Solo” was the most-Shazamed song and Ed Sheeran’s “Perfect” was the longest running No. 1 track on the service’s global charts, the company revealed today in its year-end lists. Nicky Jam and J Balvin’s “X” was the No. 2 most-Shazamed song and Calvin Harris & Dua Lipa’s “One Kiss” [...]

  • Remote for Android TV-Based TiVo Device

    TiVo FCC Filing Suggests Android TV Device Coming in Time for CES

    A filing for a new TiVo remote control suggests that the company may be getting ready to show an Android TV-based set-top box at CES in Las Vegas next month. The device likely won’t be sold to end users, but instead ship to TV operators looking to combine TiVo’s DVR capabilities with Google’s TV platform. [...]

More From Our Brands

Access exclusive content