Netflix lost $50 billion: goodbye password sharing, hello cheaper ad tier
Netflix password sharing crackdown seems imminent. Here's how it'll work.
⬇️ In this isssue: I break down what’s wrong with Netflix and what it means for you (how the password sharing crackdown and cheaper ad tier may work). I have Netflix cost savings tips at the end
🛍️ I just updated the 100 best video game and tech deals for April 2022, so check out the Samsung Galaxy S22 Ultra deals ($100 credit), Samsung Galaxy Z Fold 3 ($250 credit), PS5 SSD deals and today’s Samsung Odyssey G9 49” curved gaming monitor deal
🎁 April giveaway: PS5 Digital + 3 Samsung PS5 SSDs
The Shortcut is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.
Fewer binge-watchers are hitting ‘continue’ on their Netflix subscription, and we now know the shocking exit rate: 200,000 subscribers stopped paying for the streaming service in the company’s latest quarter, its first subscriber loss in over a decade.
🙅♂️ 200,000 subscribers lost in Q1
🤯 2 million more expected to cancel in Q2
⛔ 1st subscriber loss in over a decade
📈 35% drop in its stock price
By the end of the devastating earnings call, the Netflix stock price dropped 25% ($40 billion). It’s now down 35% ($50 billion). Netflix partners and rivals saw losses, too, according to CNBC; Roku, Spotify, Disney, etc.
In two words: it’s bad. In three words: it’s getting worse. Netflix is forecasting a loss of 2 million subscribers (that’s 2,000,000 ready to hit ‘cancel’ on their Netflix accounts).
What’s wrong with Netflix?
🥊 Competition: Disney+, HBO Max, Amazon Prime Video, Hulu, Apple TV+, etc.
😡 Netflix price hike caused outrage among inflation-hit customers (Netflix says, nah, it’s in line with losses from prior price hikes. Sure, Jan. 🙄)
🔑 Password sharing and account stealing rings are a big issue
😷 Pandemic lockdown was when people needed Netflix (and Joe Exotic) most
👎 Content isn’t king: Elon Musk and others blame everything: woke priorities, a lack of exciting original content, loss of Marvel properties – you name it
⬇️ Here’s info on the two BIG Netflix changes coming your way…
Netflix password sharing fees tested
Keep reading with a 7-day free trial
Subscribe to The Shortcut to keep reading this post and get 7 days of free access to the full post archives.