The American streaming service Netflix collapsed by 35%, for some big reasons.
Netflix the American subscription streaming service had its worst nightmare the previous day. Netflix stocks were down over 26% on Wednesday altogether now Netflix has lost nearly 35% of stock value since yesterday
This stock value loss swiped away nearly $50 billion from Netflix company. This was their biggest fall since 2004. However, the company managed to report a 10% increase in revenue during quarter 1 of 2022 and they were able to increase their average streaming paid memberships by 8%.
What’s the Reason?
So there are few main reasons which caused this downfall. Especially company announced that they lost a record number of 200,000 subscribers during the first three months of 2022. With that loss, they had to witness another loss in Russia as Netflix decided to stop its services in Russia.
After the Russian Ukraine war, many western companies stop their services inside Russia and Netflix joined them too. Netflix suspended services in Russia on March 7 a cause of losing 7,000 subscribers. So new users in Russia were not able to create new Netflix accounts and the users who already had paid for this month will not be able to renew their subscription from April onwards.
Netflix currently has a 222 million subscriber base despite Netflix says among them over 100 million additional households are accessing to Netflix service due to the reason of passwords being shared.
Netflix mentioned that this reason is slowing down their revenue with many other competitors. Netflix still remains the streaming king but they have great competitors like Amazon Prime and Disney +. So the Company announced recently an effort to crack down on password sharing.
After that users can add sub-accounts to their accounts for users, not in their households will get separate passwords for a lower price than the normal original price subscription while they will be able to transfer profile information to a new account without losing information like viewing history and recommendations.
What is Netflix doing in Metaverse?
No matter still Netflix is the largest streaming subscription service with a high revenue generated with paid membership.
Most reports have shown that the younger generation is more interested in Games than movies. With the new technology concepts like Metaverse have a much influence on the young generation.
Metaverse is all about a virtual world. It is so similar to a game or a movie. In games and movies, we are able to witness another world. Games like GTA, and Fortnite will remind you of a great virtual world. I hope you have watched Jurassic Park.
Dinosaurs are already dead but when you watch the movie you have the feeling that you are already in there. So this is the potential gaming companies and movie creators have in Metaverse. Game creators and movie creators will have the main role in Metaverse.
As a Movie and tv series streaming service, Netflix has the same energy as Metaverse. Just think you are in your house in the virtual world. You need to enjoy a movie in your virtual house, so who will be the service provider? Maybe Netflix… Most reports and experts show Netflix will be a big name in Metaverse. At the end of this year, Netflix has thought about “Netflix for games”.
There was some news that video game development giants are willing to buy Netflix or willing to create a partnership with Netflix. The reason is the potential Netflix has in the future and in the Metaverse.
Microsoft bought Activision under them because they already knew Gaming will be a big name in Metaverse. So like that Netflix with movies can change Metaverse in many ways. It will take time but Metaverse lovers will be waiting for some good news like Netflix in Metaverse.
