Image: Netflix

Things are going from bad to worse for Netflix. It is now being sued by shareholders following plummeting stock prices. The streaming giant’s stock fell by $110.75 to $397.50 per share on January 21 and lost another $122.42 to close at $226.19 per share on April 20.

The lawsuit alleges Netflix misled statements to shareholders and failed to disclose details regarding its business and operations. It says Netflix admitted to over-forecasting paid net adds for Q4, resulting in the first drop in stock prices. The next drop followed after Netflix reported losing over 200,00 subscribers. The lawsuit can be found here.

Throughout the Class Period, Defendants made materially false and/or misleading
statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Netflix was exhibiting slower acquisition growth due to, among other things, account sharing by customers and increased competition from other streaming services; (2) that the Company was experiencing difficulties retaining customers; (3) that, as a result of the foregoing, the Company was losing subscribers on a net basis; (4) that, as a result, the Company’s financial results were being adversely affected; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

Sources: Variety, Deadline

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Peter Brosdahl

As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my...

7 comments

  1. Get woke go broke. It's more than just a saying. Right now, the streaming market is extremely competitive. Most companies have decided to create their own platforms and have brought all their TV shows and movies in-house. That leaves Netflix and other services to depend more and more on their own original programming for subscriber retention.

    For years Netflix has thrown money at nearly every project that gets pitched to them. That reckless spending and the low quality content is what's driving off their subscribers. A big chunk of that is the woke programming which has been flat out rejected by the masses.
  2. Get woke go broke. It's more than just a saying. Right now, the streaming market is extremely competitive. Most companies have decided to create their own platforms and have brought all their TV shows and movies in-house. That leaves Netflix and other services to depend more and more on their own original programming for subscriber retention.

    For years Netflix has thrown money at nearly every project that gets pitched to them. That reckless spending and the low quality content is what's driving off their subscribers. A big chunk of that is the woke programming which has been flat out rejected by the masses.
    Honestly... some old fashioned T&A horror and adventure flicks would be nice. Remember Meatballs? Should have had a Jurgens product placement.
  3. I had been a steady Netflix subscriber since 2005.

    I just canceled.

    The latest price hike, along with the negative press about attacking sharers, and a dirth of content to keep me subscribed. It was three strikes.

    I had been ignoring the price hikes all these years, still occasionally watching a show there, but they have lost almost all of their third party content. The crackdown on password sharing doesn't affect me personally, but it does smell of a company looking for any excuse other than "mismanagement" to give to their board/shareholders. It all just finally added up to me not wanting to throw $20/mon down the drain for the amount of netflix content I watch.

    Netflix was far and away the most expensive streaming service I was subscribed to.
  4. I had been a steady Netflix subscriber since 2005.

    I just canceled.

    The latest price hike, along with the negative press about attacking sharers, and a dirth of content to keep me subscribed. It was three strikes.

    I had been ignoring the price hikes all these years, still occasionally watching a show there, but they have lost almost all of their third party content. The crackdown on password sharing doesn't affect me personally, but it does smell of a company looking for any excuse other than "mismanagement" to give to their board/shareholders. It all just finally added up to me not wanting to throw $20/mon down the drain for the amount of netflix content I watch.

    Netflix was far and away the most expensive streaming service I was subscribed to.
    I find myself using Netflix less and less. There was a time where Hulu, Netflix and Amazon Prime Video covered all of my streaming needs and got me everything I wanted that I lost with cable. The one exception being all my informative murder porn videos on Discovery. With Discovery+, that's taken care of. Honestly, I watch that more than Netflix at this point.
  5. I'm on the verge of getting rid of it. For us, Disney+, Paramount+, and HBO Max are what we watch the most right now. I check NF regularly but rarely find anything to watch and a lot of experiments end up feeling like lost time. We occasionally watch some things on Prime but there are multiple benefits with Prime that NF doesn't really offer. Recently we've even watched a few things on Hulu but we've got it through the Disney bundle and the ads are brutal so it's a bit of a last resort.

    I agree that mismanagement is the source of their woes. Some house cleaning starting from the top needs to happen.
  6. Yeah I think I've been watching it less and less. Although I did like the Arcane series. Love Death and Robots was kind of fun too if you're in the mood for watching a bunch of shorts. I also enjoyed the Witcher (although I did not play the games or read the books, so can't comment on how it compares to the other material)

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