Business

Netflix on the verge of being broke-RT News

Netflix executives are accused of lying about the company’s growth to its investors.

Why would account sharing cause this type of loss? Netflix should just come into terms that there’s more competition now with multiple streaming services to choose from. There are hopefully a few that have figured out that there are thousands of free streaming sites with better content than Netflix.

Exclusive News

Netflix shareholders filed a lawsuit against the streaming service on Wednesday, accusing the company’s management of fraud by issuing misleading guidance about subscriber growth, leading to a plunge in its stock price.

Filed in San Francisco, the lawsuit argues that the streaming service has failed to disclose that it is “losing subscribers on a net basis.” Unaware of Netflix’s inability to retain customers, the plaintiffs claim to “have suffered significant losses and damages.”

The allegedly defrauded investors believe that the largest streaming service in the world is experiencing a downfall primarily due to account sharing by its customers and increased competition from other streaming services. READ MORE: Shareholders sue Netflix

Last month, Netflix reported that it had already lost nearly 200,000 subscribers in the first quarter of 2022 and it expects to lose two million more in the coming months. As a result, within hours of trading the company’s shares dropped by 25%. Overall, Netflix’s capitalization has decreased by 40% this year. 

This unprecedented collapse of the company’s value has forced Netflix’s executives to consider creating more affordable subscription tiers by adding a version of the streaming platform with ads.

On March 6, Netflix announced that it would leave the Russian market due to Moscow’s military action in Ukraine. While the company said it gained 500,000 new subscribers so far this year in other countries, the loss of Russia’s 700,000 subscribers has created significant problems for the American entertainment giant.

Related posts
AfricaBusinessEconomy

EU pledges $96M loan to Cameroon to boost infrastructure

The European Union (EU) has announced a $96 million loan to Cameroon aimed at bolstering the…
Read more
AfricaBusinessEconomy

Algeria Joins BRICS Bank

In a strategic move that underscores its growing economic influence, Algeria has officially joined…
Read more
AfricaBusinessEconomy

Will Africa Take Its Gold From A Greedy West?

The idea of Africa reclaiming its gold from the West taps into a complex web of historical…
Read more

Sign up for Africa Insider’s Daily Digest and get the best of  news, tailored for you.

Leave a Reply

Your email address will not be published. Required fields are marked *

Africa

Multimillion-dollar funding is secured by an African startup.

Worth reading...