Netflix’s market valuation was slashed by $50 billion on Wednesday.
This happened after the business announced it lost over 200,000 members, with more expected in the future.
Slowly but surely, the conservative money machine is taking effect.
Elon Muck, a conservative hero, took the fight to Twitter by flexing his wallet and making a purchase offer on the company as well as becoming the company’s largest shareholder.
Now, after repeated woke programming from Netflix, frustrated conservative viewers have fled the platform in search of more neutral/sane viewing.
Netflix shares fell more than 35% on Wednesday, according to CNCB, following the streaming giant’s financial report on Tuesday, which revealed it lost customers for the first time in ten years and is projected to lose more.
In the following three months, the company expects to lose another two million members, according to the corporation. On Tuesday, Netflix informed shareholders “our revenue growth is slowing significantly.”
Netflix’s market cap dropped by more than $50 billion as a result of the significant reduction in customers.
With a year-to-date loss of 62.5 percent, the tech giant is currently the worst-performing company in the S&P 500 for 2022.
Netflix attributed its slow growth to a number of factors, including more competition and the loosening of pandemic limitations that earlier boosted viewership.
Netflix also identified password sharing as a significant problem, predicting 100 million homes share their membership with relatives or friends.
Originally, Netflix CEO Reed Hastings described the behavior as “something you have to learn to live with,” noting password sharing amongst family members is “legitimate” in many circumstances.
According to Hastings, password sharing is making it more difficult to recruit new members in some nations.
“Working on [account sharing] wasn’t a top priority while we were growing fast. Right now, we’re putting in a lot of effort on it,” he told shareholders.
Netflix Wants You to Pay More
Netflix’s payment plans, which are now being tested in Latin America, may be rolled out globally.
The goal is to get customers to spend a little more to create more account profiles and share passwords.
Netflix’s vice president of product officer, Greg Peters, explained, “The fundamental way we have is asking our users to pay a little bit extra to share the product outside of their homes.”
“Although their initiatives to reaccelerate growth (limited password disclosure and an ad structure) have value, by their own admission, they would not have significant effect until 2024.”
“That is a very lengthly time to wait on what is now a show me a tale,'” Bank of America analysts wrote in a Wednesday note.
“After what can only be described as a catastrophic 1Q subscriber shortfall and dismal subscriber and financial outlook, we cut our subscriber expectations and forced back our profit forecasts substantially,” Pivotal researcher Jeffrey Wlodarczak said in a Tuesday note.