Netflix Loses Net Subscribers - Reasons.pptx

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Streaming platform Netflix reported a loss in its subscriber base for the first time since 2011. The Silicon-based company reported $1.6 billion as net revenue for the March quarter in 2022 against $1.7 billion for the same quarter last year. https://businessupside.com/2022/05/09/netflix-loses-net-subscribers-expects-2-million-more-loss-of-netflix-subscribers/

Technology

Boom during Covid
Netflix subscribers and viewership boomed during the pandemic, and 2020 was a
good year for them. The irony was that Covid boost to streaming viewership obscured
the accurate picture. Viewers were sequestered in their homes and binged watched hits
like Squid Games, All of Us Are Dead, and documentaries such as ‘Tiger King’. The
competition for subscribers after the pandemic was HBO Max, Disney+, and others.

Reasons for degrowth
The main reason for Netflix losing subscribers in 2022, according to the company,
has been
• Password sharing by subscribers with others
• Increase competition from new streaming platforms
• Impact of connected T.V. and other technology
• Factors like Geopolitical conflict and Inflation

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If you were the CEO of ATT would you have bought Time Warner. Justify your answer Three years ago, AT&T Inc. T -1.18% executives were in a federal courthouse fighting the Justice Department to defend their takeover of Time Warner Inc., a more than $80 billion foray into the entertainment business. AT&T won the court battle, but lost in the marketplace. Now, at the behest of Chief Executive John Stankey, the telecom giant is giving up its dreams of marrying media content and distributionone of the biggest about-faces in corporate deal history. AT&T said Monday it will spin off its sprawling media empire, including HBO, CNN, TNT, TBS and the Warner Bros. studio, into a new venture with Discovery Inc. DISCB 1.29% That follows a February agreement to hive off a 30% stake in satellite broadcaster DirecTV and give up operational control of its pay-TV unit, which was hollowed out by customers trading pricey channel bundles for less expensive alternatives. All told, the two reversals erased tens of billions of dollars of equity value, as AT&T cut deals to exit its investments and shed debt. AT&T said the full value of the media transaction includes not just the equity value but also the cash AT&T will receive for divesting itself of the business. The original idea behind the two big mergers was to help the Ma Bell descendant challenge Comcast Corp. in the pay-TV business, steal digital-advertising dollars from Alphabet Inc.s GOOG 0.63% Google, and mount a challenge to Netflix Inc. NFLX 0.13% in streaming. Now, the company will stick to what it knowsthe wireless and broadband business. Its executives acknowledged the whiplash felt by employees still adjusting to the many changes the telecom company spurred over the past three years. The personal reaction is Im a bit sad, Mr. Stankey said in an interview, noting that investors havent been won over by the companys media strategy. Im disappointed that the shift in the market that occurred caused us to have to step back and re-evaluate. Both of the big deals were hobbled by strategic miscalculations and lapses in execution. AT&T bought DirecTV in 2015 near the peak of the pay-TV market, just before cord-cutting started to pick up pace. After winning the antitrust fight for Time Warner, AT&T was slow to launch a streaming service and struggled to keep up with rivals plowing billions of dollars a year into content. Cable mogul John Malone, a major Discovery shareholder, said that although he believes Time Warner is doing fine, merging content and distribution usually doesnt make sense. I think that the technology of connectivity and digital technologies are one focus, and creating content that people get addicted to is another focus, he said. And you seldom would find both of those in the same management team. John Malone, a major Discovery shareholder, said merging content and distribution usually doesnt make sense. The two most successful players in direct-to-consumer streaming video, Netflix and Walt Dis.

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1. Netflix Loses Net Subscribers - Reasons

2. Boom during Covid Netflix subscribers and viewership boomed during the pandemic, and 2020 was a good year for them. The irony was that Covid boost to streaming viewership obscured the accurate picture. Viewers were sequestered in their homes and binged watched hits like Squid Games, All of Us Are Dead, and documentaries such as ‘Tiger King’. The competition for subscribers after the pandemic was HBO Max, Disney+, and others.

3. Reasons for degrowth The main reason for Netflix losing subscribers in 2022, according to the company, has been • Password sharing by subscribers with others • Increase competition from new streaming platforms • Impact of connected T.V. and other technology • Factors like Geopolitical conflict and Inflation

4. https://businessupside.com /

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