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Hello, corporate professionals! Netflix, once the darling of Wall Street, has seen its stock plummet by nearly 70% since its peak. With a loss of $216.8 billion in market cap, the streaming giant's future seems uncertain. Let's explore the reasons behind Netflix's downfall and what it means for the company and the streaming industry.
Netflix's decline isn't just a result of market volatility. While the S&P 500 is down about 9%, Netflix's 70% drop points to fundamental issues. The biggest challenge? Stagnant subscriber growth. Netflix recently lost 200,000 subscribers and warned of more losses, signaling that this isn't just a temporary setback.
Netflix's subscriber growth has been dismal. Even if we give them the benefit of the doubt and account for the 700,000 Russian account suspensions, their growth rate is still less than 1% year-over-year. This pales in comparison to mature companies like Apple and Google, which post 20-30% growth rates.
Netflix has been losing premium content while increasing subscription prices. This has led to a decline in their value proposition. For instance, Disney+ offers arguably better content at a lower price, making it a more attractive option for viewers.
Netflix has some licensing deals that could potentially save them. They have a deal with Disney to license movies released between January 2016 and December 2018, but they can't stream these until 2026. This gives competitors ample time to eat into Netflix's customer base.
Netflix's model of releasing entire seasons at once has led to binge-watching but also makes it easy for customers to subscribe for just a month and then cancel. This is detrimental to customer retention and long-term profits.
Netflix is not just competing with other streaming services but also with social media platforms like TikTok and YouTube, which have perfected their content recommendation algorithms. The rise of short-form content and decreasing attention spans pose a significant threat to Netflix's long-form content model.
Looking at Microsoft's history, we see that it took them 16 years to recover from a 66% drop during the dot-com crash. Netflix could face a similar long-term struggle unless they pivot into new sectors, which is easier said than done.
While Netflix's innovative spirit is still alive, pivoting into new sectors will take time. Given the oversold nature of the stock, a short-term recovery is possible, but making new all-time highs could take years.
In October 2018, Lion Air Flight 610 crashed in Indonesia 13 minutes after takeoff, resulting in the death of 189 people. Five months later, Ethiopian Airlines Flight 302 crashed six minutes after takeoff and killed 157 people. Both planes were Boeing 737 Max models. The causes of both crashes were disputed for several years, and Boeing was quick to lay blame on the pilots, saying the two tragedies were due to human error.
However, the recently released documentary on Netflix alleges that the crashes were caused by flawed designs in the Boeing 737 Max planes and that executives of the company were aware of the faulty designs but still decided to send the planes into the air. After watching the documentary, online commenters were quick to voice their anger and concerns, as well as to plans to boycott all Boeing flights.
On Twitter, pop culture critic Isaac Feldberg wrote, "DOWNFALL: THE CASE AGAINST BOEING (Netflix, this Friday) is enraging. An expos of late capitalism in all its corporate greed and malfeasance, damning not only of Boeing but also the federal agencies that cut the airline a sweetheart deal after 737 MAX crashes killed 346 people."
One user wrote that Muilenburg should be in prison, "as should every single other board member @Boeing who opted to cover-up design flaws in favor of higher profits and no negativity. Our greed will be our downfall as a species."
The planes that went down in 2018 and 2019 had an anti-stall system known as Maneuvering Characteristics Augmentation System, which was implicated as a cause of both crashes. MCAS had acted on faulty sensor data, forcing the planes' noses down. The pilots in the Lion Air crash had no idea MCAS even existed within the flight system, according to NPR.
"I expected them to be deeply apologetic, to ground the planes immediately and commit to figuring out what's wrong with them," Kennedy said. "They took 346 lives. But instead, it seemed like Boeing was focused on blaming the pilots for what happened."
A Boeing spokesperson told Newsweek, "We remember those lost on Lion Air Flight 610 and Ethiopian Airlines Flight 302. Since the accidents, Boeing has made significant changes as a company, and to the design of the 737 MAX, to ensure that accidents like those never happen again. We have full confidence in the airplane's safety.
Emma Mayer is a Newsweek Culture Writer based in Wyoming. Her focus is reporting on celebrities, books, movies, and music. She covered general news and politics before joining the culture team and loves to cover news about new books, films, Taylor Swift, BTS, and anything else she might be obsessing over at the moment. Emma joined Newsweek as a fellow in 2021 and came on full-time in January 2022 after graduating from Colorado Christian University in December. You can get in touch with Emma by carrier pigeon or by emailing e.m...@newsweek.com. Languages: English.
Forget Disney Plus, it's shows like The I-Land that will be Netflix's downfall. If Netflix wants to blow a bunch of cash on constant content and not make a profit from it, it's going to need to come up with shows better than The I-Land if it ever wants to get in the black.
The I-Land is an astonishingly dumb seven-episode mystery-box limited series about 10 people who wake up on a deserted tropical island with no memory of who they are or how they got there. But that central conceit is quickly resolved by Episode 3, as The I-Land spins out of control, rolls over, and wraps itself around an entirely new and equally stupid story. I guess mystery box isn't an apt description for this indisputable disaster, as mysteries come with some intrigue to see them solved and boxes are actually useful.
There are spoilers coming, but you'll thank me so you don't have to sit through the show in order to find out its twists, and I'll try to explain the show for those of you whose minds went numb trying to piece together what was supposed to be the plot.
Though The I-Land begins with 10 people washed up on a beach, only two matter: Chase (Natalie Martinez, who has experience in television's equivalent to huffing keyboard cleaner as Officer Linda from Under the Dome) and Cooper (Ronald Peet). The others are only there to argue with each other and do things that aren't the smartest option for castaways who must learn to survive together, like sunbathing or swimming in what they discover the hard way is a shark's feeding trough. You can ignore them altogether, even Kate Bosworth's villain K.C., and you may as well because that's what the show does halfway through its made-up-as-it-went-along story.
What you'll first notice is that everyone on the island is a world-class jerkface. The combative attitudes over everyone involved leads to constant fighting and high tension, manifesting in arguments about where to camp, who gets to hold the knife, and multiple sexual assaults, committed by the same guy, no less. He says stuff like this:
But you came to The I-Land for this: There are clues that the island may not be all it seems, including a raft holding medical supplies and a gun inside locked suitcases, some numerology (Lost had 4, 8, 15, 16, 23, and 42, The I-Land has... 39), and a book that is literally called The Mysterious Island, which the sunbathing castaway finds and then immediately tosses aside as trash. The book is never brought up again.
Well, we find out in Episode 3 that the island is a virtual-reality simulation, which the trailer for the series spit out five seconds in, so I guess there really is no such thing as a spoiler in The I-Land. But why are they in this computer-generated hellhole? Because they are prisoners on Death Row, each incarcerated in one of Texas' baddest prisons for all sorts of murder and stuff. One shot up a mall, another euthanized dying patients in a hospital against orders, another is -- you guessed it -- a very rapey dude, and the best backstory of them all belongs to Bosworth's K.C., who Susan Smith'd her two young boys by driving them into a lake (her given simulation name is K.C., which stands for "Killing Children," for real). We learn all this through clunky exposition and pointless flashbacks that occur as the castaways slowly regain their memory -- though they have no memories, they kind of do have memories when it's convenient to move the story forward -- and The I-Land isn't even subtly thieving the popular backstory device of Lost, it's shamelessly announcing its larceny with a blowhorn. That episode of Lost where we figured out what Jack's tattoo meant was like poetry compared to this, no matter how much suspenseful music the show uses.
F--- it, I'm going all in and telling you everything I can about The I-Land; if I had to suffer through seven episodes of this, I'm taking you all down with me. Chase was the first to start remembering her tragic backstory. In glossy, soft-focus flashbacks that unfold over several episodes one small detail at a time like someone telling a lie that's spun out of control, it's finally revealed that Chase killed her own mother. It's also later revealed that Chase used to be in the military. It's also later revealed that Chase used to be in the military with Cooper. It's also later revealed that Chase and Cooper were/are married, and Chase's mom disapproved of their marriage, because she's an alligator-skin shoe-wearing elitist and probably racist -- Chase is Hispanic, Cooper is black. (Also for some reason the mother hangs out in a dingy basement drinking wine on a plush red chair.)
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