'Woke' Netflix Goes Broke, Loses Another 2 Million Subscribers
Streaming platform shedding viewers after pushing radical agenda
"Woke" Netflix is continuing to freefall toward going broke as the video streaming platform prepares to announce that it has lost another 2 million subscribers.
In a letter to shareholders last spring, the 25-year-old streaming service projected that two million users would cancel their membership by the second quarter.
The staggering loss comes after taking a massive hit at the beginning of this year by losing 200,000 subscribers.
“Our revenue growth has slowed considerably, as our results and forecast below show,” the report said.
“However, our relatively high household penetration — when including the large number of households sharing accounts — combined with competition is creating revenue growth headwinds.”
Netflix was a hugely profitable company until it decided to sabotage that success by going "woke" and pushing leftist propaganda onto its customers.
Andrew Hare, a senior vice president of research at Magid, told CNN Business, “all bets are off” once Netflix becomes undervalued by the market.
“There will be hell to pay if they report a number that is significantly higher than the 2 million loss being thrown around,” Hare said.
Yahoo reports the company forecasts its second-quarter earnings to be at $3 per share, which indicates a year-over-year decline of 20 percent.
Aside from attributing the loss to competing with other streaming services and massive account sharing, the company said the looming global recession, skyrocketing inflation, and the war in Ukraine also play a significant factor.
Benjamin Swinburne, head of U.S. media research at Morgan Stanley, told The Hollywood Reporter a recession and the ever-increasing inflation could hit Netflix harder than expected.
"Streaming video revenues may prove more vulnerable than expected to a global recession and lower consumer spending levels,” Swinburne said.
"While Netflix’s leading engagement should help it retain customers, its relative price premium is likely an offset as consumers look to trim their streaming bill.”
Still, 221.6 million subscribers worldwide currently have the option to log in and scroll for hours before potentially finding something to watch.
But other factors indicate that the company is struggling.
So far this year, the company has laid off over 450 employees, dozens of part-time and contract workers, and lost roughly 70 percent of its stock.
CNN Business reports what happens with Netflix’s Q2 report could reshape the company’s future and the entire streaming industry.
Hare, the senior vice president of Magid who spoke to CNN Business, said investors would give the company time to “right the ship” but would need to hear how it plans to grow back the numbers immediately.
"It’s all about communicating how they are evolving the business to ensure they continue to win in streaming,” he said.
"No one has the stomach for a business losing millions of subscribers every quarter.”
Netflix CEO Reed Hastings on Wednesday announced a new partnership with Microsoft to implement an ad-supported subscription plan.
The company has also begun implementing new ways to curb account sharing and launched an “add extra member” feature in Central and South American countries.
"It’s great that our members love Netflix movies and TV shows so much they want to share them more broadly,” a spokesperson said.
"But today’s widespread account sharing between households undermines our long-term ability to invest in and improve our service.”