Streaming giant Netflix started in 1997 with one very simple and brilliant idea: offer people movies online, instead of in stores.
25 years later, we can see the results: video rental shops are almost all out of business and Netflix raked in $29.7 billion just last year alone.
However, the platform has one big problem; people don’t particularly want to pay for what it offers and they’d rather just share their passwords.
Furthermore, the woke content on Netflix has driven many other potential customers away from what they offer.
Netflix Loses 200,000 Subscribers
Netflix got some very bad news this week; it’s dropped 200,000 subscribers in this quarter. Shareholders didn’t react well and Netflix’s stock (NFLX) went way down, losing 25% on Tuesday alone.
For over ten years now, Netflix has reported nothing but good news to investors.
A steady growth in people signing up helped it produce many programs, the vast majority about violent crime, twisted psychopaths, heavily-sexualized storylines, or the occasional drama.
However, the streaming service says this huge drop in clients is because they are dealing with more rivals and because too many people are sharing passwords. They said they plan to get much stricter about stopping password sharing going forward.
Netflix’s leadership also blamed Russia’s war in Ukraine. It is true Netflix lost a huge chunk of subscribers when the service ended all streaming in Russia and dropped 700,000 foreign customers.
They are also claiming it led to their company suffering, due to the inflation it is making worse.
Netflix might not have noticed, but inflation has been sneaking up on this country for several years now, roughly coinciding with when a senile old man called Joe Biden took over the White House.
— IGN (@IGN) April 19, 2022
Disney and Spotify Also Tank
At the same time Netflix got its bad news, Disney, Roku, and Spotify also had declines in subscribers and saw their shares fall in value as well.
Part of the reason that Netflix shareholders reacted so negatively to losing 200,000 subscribers is the board of the company predicted much darker days ahead.
They said they expect over two million to be gone by next quarter. They said the amount of money coming in has also “slowed considerably.”
Referring to “headwinds,” Netflix stated too many people are trying to share passwords and find ways to steal its content.
There are 222 million families paying for a Netflix subscription, but Netflix believes there are 100 million more people globally who are using its services by borrowing someone else’s password.
This could be a friend, family member, or stranger they pay to use their password.
Netflix lost 200,000 customers in the first quarter, according to a statement Tuesday, the first time it has shed subscribers since 2011.
Netflix projects it will lose another 2 million customers in the current second quarter, setting up its worst year ever as a public company. https://t.co/aOF36HJE8Z
— Brian Chappatta (@BChappatta) April 19, 2022
Netflix’s Worst Year
This is shaping up to be Netflix’s worst year.
It says it will crack down on password sharing and add more features, including possibly video games, but the company is in trouble if it can’t start turning this trend around.