Explaining The Netflix Stock Crash

Netflix announced a significant subscriber decline for the first time in over a decade, losing 200,000 subscribers in Q1 2022 and forecasting a loss of 2 million in Q2. This led to a 35% drop in stock value, with increased competition, inflation, and the impact of pulling out of Russia contributing to the decline. Despite this, Netflix remains a leading streaming service with 221 million subscribers. The company is also addressing password sharing, which affects 100 million users.

What was the primary reason for Netflix's market cap loss?

• Increased competition from other streaming services

• Rising production costs

• A significant decline in subscribers

• A major data breach

How many subscribers did Netflix lose in the first quarter?

• 500,000

• 1,000,000

• 700,000

• 200,000

What geopolitical event contributed to Netflix's subscriber loss?

• The Syrian civil war

• Brexit

• The US-China trade war

• Putin's invasion of Ukraine

What is one of the reasons people are unsubscribing from Netflix?

• Lack of new content

• Increased subscription costs

• Poor customer service

• Technical issues with streaming

What percentage did Netflix's stock rise from 2020 to the end of 2021?

• 50%

• 86%

• 100%

• 120%

What number did Netflix reveal for the first time regarding password sharing?

• 100 million

• 150 million

• 50 million

• 75 million

Why does the narrator believe people should pay for content?

• To support content creators

• To avoid legal issues

• To access exclusive content

• To improve streaming quality