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Netflix empire is coming to an end?

Netflix empire is coming to an end?

The popular streaming platform is under a red flag.

Netflix shares are at a turning point after reporting a drop of more than 35% in users and revenues.

According to official sources between January and March, the company experienced a fall of 200 thousand subscribers, representing its first loss after continuous growth since October 2011. Analysis of the situation foresees a not very encouraging future regarding the end of this comedown.

Going deeper into why the company lost more than $50 million of its value, we will find a complex framework where a series of decisive events set the brand’s fate. Challenged by an exhaustive fight over the market, tied to the constant need to generate different and attractive content, together with the firm’s price hikes and the removal of the service in Russia, turned out to be a dynamite sequence for the Red N company.

Moving forward into analyzing the performance of one of its main competitors, Disney Plus, in contrast to Netflix’s downward drop in subscribers, the Californian company is currently experiencing an upward trend in revenues. With a 23% growth from February to May, the brand is generating an increasingly stronger position on the market while raising expectations around the following steps to come.

In the face of this fatalistic scenario, rumors of a new dynamic in the brand’s modus operandi have been spreading. Netflix executives recently communicated to be evaluating the possibility of including advertising on the platform and more rigorous measures to avoid the usual disclosure of passwords among users.

Another crushing blow was William Ackman’s announcement to pull out his US$1,100 million investment, claiming this operation to be way too risky.

According to some experts, after an accelerated period of growth and expansion, the streaming monster is at a point where growth is no longer an easy task.

However, despite the obstacles caused by the challenging context, Netflix continues to position itself as a leader in the sector, generating more and more of its own content, such as The Crown, Bridgerton, or Squid Game. Series with worldwide impact and success.

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