Category: General|Jun 28, 2022 | Author: Admin
Must cut
Confirms slower growth
Dramatic Netflix message: announces they are losing two million customers
Share onIn May, Netflix had to ask 150 people to go, now another 300 are on their way out.
Must cut
The reason is that the company is struggling to maintain growth, per BBC News. It was in April that the dramatic news came that they had lost 200,000 customers, among other things due to lower revenues and commitment due to password sharing. Netflix believes it will lose another two million customers by July this year.
Increased competition is of course also part of the reason after the company was for a long time almost alone and the king on the mound.
The quarterly report struck like a bomb for the company, which was penalized on the stock exchange after trading by 25 percentage points. The company owes, among other things, 100 million borrow other people's accounts, but it is also the case that the service's monthly price has been adjusted upwards a number of times, at the same time as they have increased competition from services that offer advertising subscriptions.
Confirms slower growth
Now the situation is completely different with a number of strong competitors.
This has led Netflix to look in the direction of a cheap subscription with ads, a project Netflix now confirms they are interested in launching, and already this year.
If the message the 300 has received, the company reports:
While we continue to invest significant resources in the business, we have made these adjustments so that our costs grow in line with slower revenue growth.