Netflix is still the largest platform for streaming video on demand, despite the fact that during the previous quarter it lost 200.000 subscribers instead of attracting several million, as happened in previous quarters. Netflix now has problems with shareholders who owned shares from the end of 2021 until the first part of 2022, accusing the company of revealing false data to them about the reasons for subscribers leaving the platform.
Netflix is accused of not disclosing to its shareholders the fact that subscribers are leaving the platform because of the "sharing of passwords for accounts", but also because of the competition generated by other video-on-demand streaming platforms. The reality is that the number of subscribers that Netflix lost in 3 months is tiny compared to the more than 200 million subscribers who use the platform at the moment, but the shareholders were scared of the loss.
Netflix: MAJOR New Issues for the Video Streaming Platform
Netflix must defend itself in this new lawsuit filed by its shareholders, and this is because the price of the shares fell by 35% after the announcement of the American company, its stock market capitalization also falling by 50 billion dollars. Netflix did not say much about what is happening with this process, but away from the eyes of the world it chose to prepare a series of measures to reduce the operating costs of the entire company in the next period.
Netflix has also reduced the funding for many important productions that it intended to launch, and this is because it saves hundreds of millions, or even billions of dollars, with this decision. Of course, Netflix is also preparing the measure of banning the sharing of passwords between users, an extremely serious measure that will more than likely upset a lot of people, which could lead to another exodus of subscribers, but at least it will reduce operating costs.
Netflix has created an on-demand streaming platform that has proven to be very successful, so it is expected that it will find the right solutions to continue as it has done so far, with great success.
