Netflix lost a large number of users!
Bad content and wrong business policy have ruined Netflix, and the consequence is losing a large number of users. What will happen next we will see.
For the first time in a decade, Netflix is losing subscribers. The fact is that they lost 200,000 subscribers in the first quarter of this year, and this negative trend is expected to continue, reaching two million. This automatically triggered the sale of shares, which is not unusual because it is expected that in such situations some shareholders panic. But when the entire stock is sold by a well-known financier like Bill Ackman, who runs a strong hedge fund Pershing Square Holdings, and loses $ 400 million in the process, it means high financial circles may find Netflix hard to come back.
The fact is, too, that the new competition, specifically HBO Max, caught up with Netflix very quickly. It was announced that the streaming platform already has 77 million subscribers, three million more than in the previous quarter, and nearly 13 million since its launch in America. And that’s no wonder, regardless of HBO’s experience and tradition of success, the surprise was still the rhythm with which it began airing hit series and movies from the start.
And Disney plus has yet to perform globally with its portfolio that includes, for example, "Star Wars". And then let's add new streaming platforms in America like Paramount, which also performed with very strong titles, while Netflix itself, in fact, didn't have a real hit for a long time.
When you look at the most-watched Netflix titles in general, the only thing a bit fresher is last year’s “Maid,”.Everything else is either older or it’s new seasons of otherwise popular titles.
As for the series, it was, clearly, "Squid Game" which was also a surprise for Ted Sarandos, the current director of Netflix and the creator of its success. There was also one specific reason for this, Netflix turned to a more traditional hierarchy in content creation, so it became similar to Hollywood. Elon Musk also joined the debate about Netflix. He believes that this streaming platform is being destroyed by the virus of excessive political correctness in Ukraine and the fact that they withdrew from the Russian market, which is why users there intend to sue them. The second reason is sharing of passwords, which they intend to put an end to. They think that with 222 million households paying for their service, another 100 million have borrowed passwords. This is exactly one of the reasons that Ackman stated that they encouraged him to sell his portfolio. 'Netflix's plan to introduce cheaper streaming packages to offset advertising revenue and an attempt to monetize an estimated 100 million borrowed passwords are unexpected factors that fail my initial analysis of the company's future,' Ackman stated.
