Netflix blames you for the problems, but the real problem is Netflix

The streaming service isn’t doing well and that’s your fault, but the real problem is Netflix itself.

Netflix lost users for the first time last month, blaming password sharing and the war in Ukraine. Income also drops considerably, which is never good news. Perhaps this is due to financial mismanagement within the company itself.

Netflix problem

Reed Hastings, co-CEO of Netflix, has long been the platform’s biggest evangelist. But now he’s basically blaming user password sharing and competition for the company’s dwindling fortunes. Netflix’s stock price plummeted last month, scaring shareholders.

The company blamed its subscribers—particularly password sharers and banned Russians—as a major reason for the decline. Analysts and business critics have a different take, one of how a company that had built up large debts to fund its dominance could no longer support itself when subscriber numbers finally began to dwindle.

Income

The world’s most popular streaming service reported on April 19 that it had lost 200,000 subscribers in its first quarter. This while it originally expected to win 2.5 million. It also forecast doom and gloom for the next quarter, forecasting a loss of another two million.

The company has begun laying off employees and halting long-awaited productions to stave off further decline. In the Q1 earnings call, co-CEO Reed Hastings partially put the matter at the feet of consumers. Of course that could be the case, but the company has known this for a long time. In fact, this was true in the past promoted by Netflix. This could have been handled better.