K-Drama Stocks Fall as Netflix to Curb Spending on Films, Shows
- Studio Dragon behind Netflix Original ‘Sweet Home’ plunges 6%
- Still, analysts stay positive about the firm’s plans for Asia
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K-drama stocks, or shares of Korean drama production studios, slide on Wednesday as Netflix Inc. said it will curb its spending on films and TV shows after reporting its first subscriber loss in more than a decade.
An equal-weighted basket of local drama producers’ shares dropped about 2% on Wednesday, underperforming the Kosdaq Index that includes about a dozen of the stocks. Netflix stock plunged 26% in extended trading after the company forecast a drop of 2 million customers this quarter, also sending other streaming stocks lower.