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Netflix lost $50 billion: goodbye password sharing, hello cheaper ad tier

Netflix lost $50 billion: goodbye password sharing, hello cheaper ad tier

Netflix password sharing crackdown seems imminent. Here's how it'll work.

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Matt Swider
Apr 20, 2022
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Netflix lost $50 billion: goodbye password sharing, hello cheaper ad tier
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  • โฌ‡๏ธ In this isssue: I break down whatโ€™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

  • ๐ŸŽ Iโ€™m writing banner-ad-free content for you daily; see iPhone 14 release date and Apple Watch 8 rumors

  • ๐Ÿ›๏ธ 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 todayโ€™s Samsung Odyssey G9 49โ€ curved gaming monitor deal

    • Quick link: Walmart deals by popularity

    • Quick link: Best Buy deals

  • ๐ŸŽ April giveaway: PS5 Digital + 3 Samsung PS5 SSDs

  • ๐Ÿ™Œ If you need a PS5 restock, check for my Sony Direct PS5 queue invite email guide, and your local GameStop store Saturday

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Fewer binge-watchers are hitting โ€˜continueโ€™ on their Netflix subscription, and we now know the shocking exit rate: 200,000 subscribers stopped paying for the streaming service in the companyโ€™s latest quarter, its first subscriber loss in over a decade.

  • ๐Ÿ™…โ€โ™‚๏ธ 200,000 subscribers lost in Q1

  • ๐Ÿคฏ 2 million more expected to cancel in Q2

  • โ›” 1st subscriber loss in over a decade

  • ๐Ÿ“ˆ 35% drop in its stock price

By the end of the devastating earnings call, the Netflix stock price dropped 25% ($40 billion). Itโ€™s now down 35% ($50 billion). Netflix partners and rivals saw losses, too, according to CNBC; Roku, Spotify, Disney, etc.

In two words: itโ€™s bad. In three words: itโ€™s getting worse. Netflix is forecasting a loss of 2 million subscribers (thatโ€™s 2,000,000 ready to hit โ€˜cancelโ€™ on their Netflix accounts).

Whatโ€™s wrong with Netflix?

  • ๐ŸฅŠ Competition: Disney+, HBO Max, Amazon Prime Video, Hulu, Apple TV+, etc.

  • ๐Ÿ˜ก Netflix price hike caused outrage among inflation-hit customers (Netflix says, nah, itโ€™s in line with losses from prior price hikes. Sure, Jan. ๐Ÿ™„)

  • ๐Ÿ”‘ Password sharing and account stealing rings are a big issue

  • ๐Ÿ˜ท Pandemic lockdown was when people needed Netflix (and Joe Exotic) most

  • ๐Ÿ‘Ž Content isnโ€™t king: Elon Musk and others blame everything: woke priorities, a lack of exciting original content, loss of Marvel properties โ€“ you name it

โฌ‡๏ธ Hereโ€™s info on the two BIG Netflix changes coming your wayโ€ฆ

Person watching Netflix
picture alliance / Getty Images

Netflix password sharing fees tested

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