DECRYPTION – Faced with a loss of subscribers, the world leader in video streaming wants to change its business model.
Washington
The end of Netflix’s golden age was symbolized on Wednesday on the New York Stock Exchange by a dizzying 37% plunge in its share price. In a few hours, more than 50 billion capitalization of the world leader in video streaming flew away. This spectacular stock market correction is the consequence of the announcement of the first decline in ten years in the number of Netflix subscribers compared to the last quarter of 2021. The fall of 200,000 users is admittedly modest compared to a total of paying subscribers of 221, 6 million. It is no less worrying in the eyes of investors, because Netflix expected to gain 2.5 million new customers.
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Above all, it should increase in the next quarter: the group is already anticipating the loss of 2 million additional subscribers in the spring. The disappearance of 700,000 subscribers in Russia, because of the embargo decided to sanction the invasion of Ukraine, explains only a small part of this erosion.
Reed Hastings…
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