Netflix could face further financial troubles after it was revealed that its subscriber count fell by 970,000 in the second quarter – when it was further blown up woke up shows.
On Tuesday, the streaming giant revealed the loss of subscribers, though it wasn’t nearly as bad as the two million lost customers some analysts had predicted.
But after losing 200,000 subscribers in the first quarter, Netflix now faces an uphill battle to regain the $690.31 share price it was just in October.
Tuesday’s better-than-expected bad news caused shares to close down 5.61 percent — although the current price per share of $201.63 is still well below the highs of less than a year ago.
Shares continued to climb during after-hours trading, to close at around $218 just before 6:00 p.m. EST.
But Netflix faces its first full day of reckoning when markets open Wednesday morning — and there’s no guarantee the streamer won’t see its share price fall further.
The huge drop in subscribers is seen by many as a direct result of Netflix’s belated response to demands from its audience to tone down its woke agenda.
Netflix shares closed at 201.63 after a less severe-than-feared plunge in subscribers, down 5.61 percent. But the company’s stock price is still well below the record high of $690.31 it hit in October 2021
A longer-term look at Netflix’s stock price shows that despite Tuesday’s surge, its value is 66 percent lower than it was at the start of 2022. And there’s no guarantee the company won’t suffer another tumble when markets reopen Wednesday mornings
After shares fell from nearly $700 to as low as $166 over the course of six months, the company rushed to send out a “culture memo,” letting employees know if they liked the content who they work are offended, Netflix may not be the right place for them.
The bold move seemingly impacted consumer perceptions.
Netflix’s promise to give artists the freedom to express themselves followed the cancellation of several of its iconic progressive programs.
Meghan Markle’s ill-fated project Pearl and Dr. Ibram X. Kendi’s “Antiracist Baby” is part of a wave of cuts prompted by Netflix’s drop in subscriptions in the first quarter.
Pearl, which focused on how 12-year-old Pearl explored successful women throughout history, was still in its infancy.
Netflix has released a variety of new hits, including Stranger Things, Squid Game, Bridgerton, and Sex Education.
But it has also produced “woke” content like He’s Expecting, which depicts a man becoming pregnant.
Viewers have blasted the company, saying they have no interest in “patronizing lectures and signaling virtue.”
Netflix continues to suffer the consequences of its “preaching and woke” title picks as it announces 970,000 lost subscribers in the second quarter. The scenario isn’t nearly as catastrophic as Netflix anticipated as the embattled streaming giant braced itself for losing two million subscribers
Meghan Markle’s ill-fated project Pearl and Dr. Ibram X. Kendi’s “Antiracist Baby” is part of a wave of cuts prompted by Netflix’s drop in subscriptions in the first quarter
Netflix has produced “awakened” content like He’s Expecting, which portrays a man becoming pregnant
The Netflix adaptation of Resident Evil, for example, drew criticism from viewers who criticized the streaming giant for waking up the main characters and being vindictive towards men. cosmic book reported.
The company reported that quarterly revenue rose 9 percent year-over-year to $7.97 billion, falling short of expectations. Earnings of $3.20 per share rose 7 percent year over year and beat expectations.
Though Netflix stock has skyrocketed on recent earnings numbers, the company’s shares are down more than 66 percent year-to-date.
In May, Netflix executives warned against “censoring specific artists or voices” even if employees view the content as “harmful.”
The said document also urged workers to tighten their belts and rein in company spending when the company’s finances falter.
Young activists have targeted the likes of comedian Chappelle for making jokes about transgender people and have tried to unseat him.
He said “gender is a fact” on the stand-up special, criticizing what he described as the thin skin of the trans community.
The jokes were based on observations by Harry Potter author JK Rowling, who said in 2019 that trans women are not actually women and are a threat to their identity.
Young activists have targeted the likes of comedian Chappelle for making jokes about transgender people and have tried to unseat him. But Netflix CEO Ted Sarandos rowed behind Chappelle and continued publishing the show – sparking a mass exodus of awakened workers
But Netflix CEO Ted Sarandos rowed behind Chappelle and continued publishing the show – sparking a mass exodus of awakened workers.
Netflix finally seemed to stamp out the backlash with the memo titled “Netflix Culture – Seeking Excellence.”
The memo, which was sent to staff, was the first update to the culture guide in five years, when it used to be just called “Netflix culture.”
But it retains the core principles of the original document with annotations to strengthen employee decision-making and encourage honest feedback.
The list appeared to be Netflix taking a strong stance against those trying to thwart artistic content they disagree with.
The question remains whether Netflix’s commitment to shifting gears on vigilance is actually getting results, and whether it’s actually a genuine concern of the company or a public relations strategy.
The Stranger Things stars can be seen in a picture from last season
The streaming giant also forecast that it will add 1 million subscribers in the current quarter, sending its shares up as much as 8 percent in extended trading.
Analysts who had expected lower subscriber losses pointed to the streamer’s popular series Stranger Things which launched a new season in two parts – one at the end of the second quarter and one at the end of the third.
The staggered release strategy was widely seen as a means of preventing users from subscribing to the show and quickly canceling their membership.
“We will likely start in a handful of markets where ad spend is significant,” Netflix said in a statement.
“Like most of our new initiatives, our intent is to roll them out, listen and learn, and iterate quickly to improve what’s on offer.”
Though Netflix stock has skyrocketed on recent earnings numbers, the company’s shares are down more than 66 percent year-to-date.
Netflix remains the dominant global streaming platform, reporting a total of 220.67 million paid subscribers at the end of the second quarter.
