Customers are deserting Netflix in increasing numbers, posing a major threat to the corporation’s financial health.
Netflix stock fell more than 20 percent in after-hours trading following the company’s first-quarter earnings, which came in far worse than anticipated.
So far this year, Netflix shares have tumbled 55%.
Netflix, which still has a production agreement with Barack and Michelle Obama, said it had 200,000 fewer subscribers for the first quarter of the year — a major disappointment for the firm, which predicted 2.5 million new members.
Even more problematic, executives are predicting that Netflix will lose 2 million more subscribers this spring, making it the company’s worst quarterly loss of customers ever.
The guidelines provide a dismal financial picture for Netflix, which relies on consumer payments as its main source of income. In an investor letter, the company attributed lower revenue to password sharing and increased rivalry from other streamers like Disney+ and Amazon Prime Video. “Revenue growth headwinds” were to blame, according to the letter.
Netflix is cracking down on password sharing, which costs the company billions of dollars each year. Among its methods is to charge subscribers who share their passwords with persons outside of their homes.
Netflix made no mention of customers becoming increasingly alienated by its woke programming and close Democratic Party sympathies. Netflix’s top executives backed Joe Biden and Kamala Harris’ bids, as well as those of far-left radicals like Los Angeles County District Attorney George Gascon, who has policies that have resulted in a rise in murders and other violent crimes.
Netflix also neglected to discuss the company’s recent rate hikes for all domestic customers, in which the premium plan rose from $17.99 to $19.99 a month.
The firm has been unable to fulfill subscriber expectations in the last quarter, prompting a stock sell-off.
This collapse proves that liberalism and being “woke” kills companies faster than anything. We for one will be recommending to our friends and family members that they should cancel their Netflix subscriptions.