Do not trust Sol: Netflix's brutal crash
Netflix expected 2.5 million new entrants in the first quarter, but lost 200,000 and the stock collapsed more than 35 percent on Wall Street.
Next step: Inserting advertisements for a discounted subscription?
Walla!
Of money
20/04/2022
Wednesday, April 20, 2022, 8:15 p.m.
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In recent quarters, there has been a decline in the number of newcomers to Netflix, but the negative peak reached the streaming giant yesterday (Tuesday) when it published its Q1 report in 2022.
After predicting growth of hundreds of thousands of subscribers, it became clear that Netflix had lost 200,000 users, causing Wall Street to punish it heavily - with a staggering 35 percent drop in stock value.
In doing so, it lost more than 60 percent of its campaign earlier this year.
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Reed Hastings, CEO of Netflix (Photo: GettyImages, Ernesto S. Ruscio / Getty Images / Netflix)
The reasons for the decline are many and varied, including the rise in the network's prices, which has caused users to avoid and abandon.
However, Netflix is pointing the finger of blame at users, claiming that breaking the rules and sharing passwords is hurting the scope of users.
Another reason, Netflix says, is the war in Ukraine.
The company says that the fighting has led to the disconnection of 700,000 users: "People are now looking for something to eat, they are not interested in 'strange things'."
"The company has confirmed that they are exploring options for additional charges from each household that will share passwords. We will also look at a model of introducing advertisements as part of a discounted package." I am not a proponent of advertisements and complexity, I am in favor of a simple experience, "said CEO Reed Hastings. But I am also very much in favor of the audience's choice. "
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