Only making $30 billion in 2021, Netflix forced to start layoffs
Netflix reported having lost 1/1100th of their subscribers recently (200,000) and is bracing to lose close to 1% of their subscriber base. The layoffs, series cancellations, and punishing users for behavior they condoned and promoted have begun.
I’m uncertain if the cancellation of shows like Space Force, Gentrified, Cooking With Paris, Stranger Things, Never Have I ever, The Baby-Sitters Club, Locke & Key, Raising Dion, and On The Verge have anything to do with their current state of freakout, but it sort of feels like it.
Stranger Things probably it was its time…
Netflix was making about a billion a month on subscriptions in 2021, so the rest is licensing, sales of media to people who don’t have Netflix, etc.
So if Netflix has 221.64 million subscribers, averaging even $4.50 a month per subscriber gets that to a billion (think phone company bundling,) Netflix’s 1st quarter loss of 200,000 subscribers meant about a million dollars lost a month, or $12 million a year.
They’re bracing to lose $10 million a month, or $100 million a year. If they can make revenue of $19 billion on non-subscription licensing, and there’s really no reason to think they won’t… they would have a paltry 29.9 billion even losing what they’re worried about.
There’s not a lot of word on what the number of layoffs were or what the reasoning behind them is, just that they started.
Investor panic caused a nearly 50% drop in stock price, a loss of around $89 billion in Netflix stock. All of this for a potential $100 million loss of revenue. Market reacted by losing in two days 890 times the expected yearly income loss. Good job.
Looks like everyone’s just losing their mind and working at shooting themselves in the foot again and again and again. I’m sure news of layoffs isn’t going to panic the market at all.