Marcus Lu, Sabrina Fortin and Clayton Wadsworth collaborated on a Visual Capitalist project to see how streaming giant Netflix got into financial pickle. The company lost 200,000 subscribers recently, its first decline in 10 years, and shares are trading at multi-year lows.
Apparently spending $30M per show episode isn't a good idea. Here's what they found.
Key takeaways:
-
Netflix says pulling out of Russia, increased competition and account sharing is hurting them the most.
-
Netflix estimates losses up to two billion dollars because it claims 100 million households use the service without paying.
-
Share prices reached highs ($691) towards the end of 2021 and have since dropped to under $200 recently.
-
Netflix's main competition, Disney+, was launched in November 2019 and HBO Max launched in May 2020, but began subscriptions earlier.
Number Of Subscribers Between Netflix, Disney+ And HBO
| Date | Netflix Subs | Disney+ Subs | HBO/HBO Max Subs |
|---|---|---|---|
| Q1 2020 | 182.8M | 26.5M | 53.8M |
| Q2 2020 | 192.9M | 33.5M | 55.5M |
| Q3 2020 | 195.1M | 60.5M | 56.9M |
| Q4 2020 | 203.6M | 73.7M | 60.6M |
| Q1 2021 | 207.6M | 94.9M | 63.9M |
| Q2 2021 | 209.2M | 103.6M | 67.5M |
| Q3 2021 | 213.6M | 116.0M | 69.4M |
| Q4 2021 | 221.8M | 118.1M | 73.8M |
| Q1 2022 | 221.6M (21% ↑ Since Q1 20) | 129.8M (396% ↑ Since Q1 20) | 76.8M (43% ↑ Since Q1 20) |
Read more at Visual Capitalist.
