More Bad News For Netflix
It hasn’t been a great year for Netflix.
On Tuesday, the streaming giant reported its first quarter earnings, saying that it had lost subscribers — and they expect to lose even more.
Netflix has lost 200,000 customers so far this year, and they believe that they’ll lose another two million in the second quarter of 2022.
In the wake of the news, the company’s stock plummeted 35% — losing $50 billion in market cap.
In addition to raising its prices, Netflix is also turning to two other unpopular methods for recovery– password sharing crackdowns and ad-supported plans.
“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription,” CEO Reed Hastings said. “But as much as I am a fan of that, I am a bigger fan of consumer choice, and allowing consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense.”