General Question

luigirovatti's avatar

What's YOUR reaction to the, well, reaction of Netflix for the 800% drop of subscriptions and a "weak third quarter earnings earlier this week" (Daily Mail)?

Asked by luigirovatti (2581points) October 25th, 2020

Netflix, more or less, said that with the COVID there was a boom of subscriptions anyway. But it’s clear Netflix will be affected in the long term. What do you think about it?

N.B. Cuties is still the most watched movie on Netflix.

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25 Answers

RedDeerGuy1's avatar

You don’t need NetFlix if you are homeless from losing your job from Covid-19.

janbb's avatar

It would help to have a link to the article to read.

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Darth_Algar's avatar

An 800% drop? Pretty remarkable to lose 8 times more people that were subscribing in the first place.

Pandora's avatar

Why did it drop? Nexflix to me has a larger selection of shows to me than most of the others. Though Hulu did counter by making HBO only available to them. So it could be people have switched over to Hulu and canceled their TV HBO because cable is usually more expensive. It could also be the rise in unemployment. I notice a lot of services are trying to add different things to make their service more desirable. For instance. My phone company now has even added HBO as a free service. People are tightening their belts and these companies have to fight harder to keep them, so they are trying to lure people to keep the businesses going. Which is a good thing. It becomes harder to price gouge people.

jca2's avatar

I’m wondering if it might also have to do with the fact that many people went back to work in the past month or so, and therefore are not home watching TV.

Pandora's avatar

@jca2 Ah, I did hear about it but I thought it was’t being shown in the US . So creepy. Now that explains the 800 percent drop.

ragingloli's avatar

The reason I left Neftlix years ago, was their horrible discoverability system, lack of user rating, and their intention to show advertising.
And recently, with studios wanting to run their own streaming services, leading to a massive overall marget segmentation, I would think there to be a lack of movies and tv shows that people want to watch.

Pirate Bay, my old friend. We meet again

si3tech's avatar

IMHO that drop reflected the “people’s choice” disliking the subbject matter.

Demosthenes's avatar

I heard that it was due to Cuties. Netflix decided to “die” on that hill. Not sure why. The reaction to Cuties was in part inspired by QAnon bullshit, but it’s still a strange movie to risk losing so many subscribers over.

Darth_Algar's avatar

Clearly it’s because of a single film and nothing to do with the fact that, unlike a few years ago, Netflix has competition and exists in an increasingly saturated market.

janbb's avatar

@Demosthenes As a librarian, I know that sometimes censorship and free speech battles are fought over the unworthiest of content.

elbanditoroso's avatar

800% no way. The most you can lose is 100%.

Bad statistics. Bogus question.

luigirovatti's avatar

@jca2: Sorry, I forgot to post. This link explains it better:

@elbanditoroso: I also quoted, more or less, “in the third quarter earlier this week”.

Zaku's avatar

1. Daily Mail is trash.
2. I don’t know what Cuties is and I don’t want to.
3. What mathematically is an 800% drop in subscriptions, to you? To me, that means negative previous subscriptions x 7? i.e. It means nothing that makes any sense to me. (As @elbanditoroso just pointed out above).
4. You asked what my reaction is. My reaction is that even if I trusted the Daily Mail and knew what you were writing, I would not care.

5. Ok, I peeked at the non-Daily-Mail article you just linked. Right, so outrage about that show.. Lots of Netflix cancellations. My reaction: Gee. Ok. I guess some people still care about some things and will rage-quit Netflix. At least for a while. Ok. The only thing I really like about Netflix is that they have produced some good shows and are an alternative to traditional TV companies for that. I think they will probably recover. It may be a good time for stock market speculators to take advantage of a share price dip, assuming Netflix is publicly traded.

Darth_Algar's avatar

@Zaku “The only thing I really like about Netflix is that they have produced some good shows and are an alternative to traditional TV companies for that.”

The problem is that, a small handful aside, they are absolutely unwilling to commit to any of their shows long term. Many of their shows, even with a devoted fanbase, get dropped after a couple of seasons. People grow tired of investing in shows that end suddenly with no conclusion.

(Thank fuck The Expanse landed on Amazon rather than Netflix.)

LuckyGuy's avatar

According to this business article in the LA Times Netflix added 2.2 million subscribers in the 3rd quarter 2020. That is down from the projected 2.5 million.
That was why the market reduced their share price a little. They now have 195 million subscribers worldwide.

That does not sound like an “800% drop”. What does that number even mean?

I figure the market is pretty close to saturation now. Amazon is eating into their viewership.

jca2's avatar

Cut and pasted from the article: “Netflix, which anticipated a drop in the number of subscribers during third quarter, told investors that the easing of coronavirus lockdowns as well as stronger competition from streaming services would likely lead to a slowdown in growth. ”

luigirovatti's avatar

It’s meant this way: Let’s suppose 1st quarter 2020 = 100%. Then they can say 2nd quarter of 2020 +50%. And in the 3rd quarter it’ll be, like, 150% less. Anyway, to put it in layman terms, the article I linked, inside says: “puts September cancellations at 8 times of those in August”. Now you understand? The 800% is 100% of the previous month, multiplied by 8 times.

LuckyGuy's avatar

Thank you. I can see that now. That number is only looking at cancellations not total subscriptions. It totally ignores the fact that subscriptions rose 2.2 million – a number far larger than the cancellations.

Zaku's avatar

Right, so the wording “800% drop” was misleading and meaningless, because it left out WTF it was talking about. Also your wording “Let’s suppose 1st quarter 2020 = 100%” was meaningless without saying “of WHAT”. And even when you know it’s talking about cancellations, it’s still a pretty meaningless figure because you need to know several other things to give it any meaningful context, such as:

* In comparison to what time period (at least you mentioned that in the last post).
* How does that last period’s cancellation rate compare to the history of cancellations in the past, recently, etc.?
* As @LuckyGuy mentioned, how do cancellations relate to total subscriptions and new subscriptions, and how does that relate to the past?
* What other circumstances have been going on and what are their known and expected effects on subscriptions and cancellations?

So I still don’t feel like I have anywhere near enough information to feel like I get the actual picture, except it sounds like the total and new subscriptions are huge compared to the number of cancellations.

And, I still don’t care.

Goldenfish's avatar
Its because of this and Netflix going be loose its subscribers and die like blockbuster.
Watch this its literally give you better response and idea. Either join crusade or choose watch Netflix die.

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