Loss of Netflix subscribers throws streaming business model into question

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Loss of Netflix subscribers throws streaming business model into question via IrishTimesBiz

Sadie Sink as Max Mayfield in the fourth season of Stranger Things. The series helped to flatter Netflix's latest numbers. NetflixLast quarter, the streaming group shocked both Wall Street and Hollywood with an abrupt end to its decade-long growth spurt, triggering a dramatic fallout likened to the dotcom crash.

“The cost of living crisis [is] having a profound impact on all companies”, said Paolo Pescatore, analyst at PP Foresight. “No one is immune.” Netflix was the worst-performing stock in the S&P 500 for the first half of this year. Its market value has shrunk from more than $300 billion in November, to $90 billion.

Cancellations have been most acute in the US and Canada, Netflix’s largest market, where nearly 2 million people ditched their accounts in the first half of this year. Already there are more video streaming subscriptions than there are people in America, with 380 million subscribers to a population of 330 million, according to data company Ampere Analysis. Globally, Netflix has previously touted a pool of 1 billion potential customers who have access to the internet. Now, Nathanson warns the potential market may be closer to 400 million.

 

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