Written by Research Assistant Okan Kırbacı, “Netflix's User and Value Loss!” The article titled, Netflix, which is the most widespread TV series-film platform in the world and our country, discussed the number of users lost as of April and its economic value. In the continuation of the article, a realistic prediction was made with the steps taken by Netflix from the past to the present and the reasons for the loss in question.
Res. Asst. A short excerpt from Okan Kırbacı's article:
“Netflix announced this month that it lost 200,000 users in the last quarter, which until now has been posting a large and small increase every quarter. Naturally, the company also suffered a great loss in value in the stock market. Netflix's last user-based depreciation occurred at the end of 2018, but unlike this period, it is observed that the number of users was still increasing at that time. The reason for the loss in that period is that the targeted number of new users could not be reached. Another striking point in Netflix's statement is that they expect to lose 2 million more users this year…
…It is possible to say that there are several reasons for Netflix's loss of users and value. Chief among these, as stated in the company's statement, is that the suspension of Netflix services in Russia cost the company 700 thousand users. Likewise, the launch of new digital platforms and the increase in its market share weakened Netflix. For example, Disney+, one of the new names in the market according to Netflix, announced in its statement in November last year that it would increase its budget for content production by another 33 billion dollars in 2022, and this summer it will start broadcasting in 11 new countries, especially Turkey.
…Due to the developments, the CEO of Netflix, Red Hasting, stated that although Netflix has been advocating for the economic model that offers content to its users without ads for years, they are open to changes in the current economic model and that they are considering offering a lower-paid subscription model that includes ads.”
We congratulate Okan Kırbacı and wish him continued work.
