Netflix-The Way Ahead

Netflix-The Way Ahead
Case Code: BSTR678
Case Length: 13 Pages
Period: 2007-2022
Pub Date: 2024
Teaching Note: Available
Price: Rs.400
Organization : Netflix, Inc
Industry : Leisure & Entertainment
Countries : United States
Themes: Corporate Strategy, Business Environment, Business Level Strategies
Netflix-The Way Ahead
Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

In July 2022, US-based subscription streaming service and production company, Netflix, Inc. (Netflix) announced that it had lost 970,000 subscribers during the quarter ending June 30, 2022. Surprisingly, the news was received with a sigh of relief by shareholders and analysts, as the company had previously predicted that it would lose 2 million subscribers during the quarter.

During the previous quarter, ended March 31, 2022, Netflix had lost 200,000 subscribers , against its projection of adding 2.5 million subscribers. The company announced, “Paid net additions were -0.2m compared against our guidance forecast of 2.5m and 4.0m in the same quarter a year ago. The suspension of our service in Russia and winding-down of all Russian paid memberships resulted in a -0.7m impact on paid net adds; excluding this impact, paid net additions totaled +0.5m...”

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