(Slay News) – Elon Musk has put Netflix on notice after the subscription service saw its share prices plummet following reports that the company suffered huge losses in subscribers.
After the company reported a loss of 200,000 subscribers during the first quarter on Tuesday, shares of Netflix tanked by more than 25 percent.
And Netflix is forecasting a global paid subscriber loss of 2 million for the second quarter.
Responding to the news, Musk said on Twitter: “The woke mind virus is making Netflix unwatchable.”
A Twitter user responded with: “Woke mind virus is the biggest threat to the civilization”
To which Musk responded: “Yes”
Netflix Shares Crater 20% After Company Reports it Lost Subscribers For the First Time in More Than 10 Years https://t.co/rH2AklZJsl
— Slashdot (@slashdot) April 19, 2022
Another Twitter user said:
“Not just Netflix. Movies in general, videogames, tv, it’s all infested with current year trend woke garbage for fear offending a green-haired freak next to the ban button.
“Nothing original anymore at all, except for media coming out of places like Japan or Korea, ironically.”
Musk responded: “True. Can they please just make sci-fi/fantasy at least *mostly* about sci-fi/fantasy?”
— Elon Musk (@elonmusk) April 20, 2022
In a letter to shareholders, Netflix wrote:
“Our revenue growth has slowed considerably as our results and forecast below show.
“Streaming is winning over linear, as we predicted, and Netflix titles are very popular globally.
“However, our relatively high household penetration – when including the large number of households sharing accounts – combined with competition, is creating revenue growth headwinds.
“The big COVID boost to streaming obscured the picture until recently.
“While we work to reaccelerate our revenue growth – through improvements to our service and more effective monetization of multi-household sharing – we’ll be holding our operating margin at around 20%.
“Key to our success has been our ability to create amazing entertainment from all around the world, present it in highly personalized ways, and win more viewing than our competitors.
“These are Netflix’s core strengths and competitive advantages,” the letter said.
“Together with our strong profitability, we believe we have the foundation from which we can both significantly improve, and better monetize our service longer-term.”
Netflix was an earlier winner when Covid lockdowns sent families inside and searching for entertainment.
But the company now says pandemic-era gains “clouded the picture” for the company and that it’s seeing a downturn as people return to more normalized out-of-home activities.
In an effort to continue to gain share in the market, Netflix has increased its content spend, particularly on originals.
To pay for it, it’s hiked prices of its service.
The company said Tuesday those price changes are helping to bolster revenue but were partially responsible for a loss of 600,000 subscribers in the U.S. and Canada during the most recent quarter.
While the company is exploring other options for growth, such as adding video games, analysts and investors are wondering what else Netflix can do to bolster profits.
The company’s revenue increased nearly 10% to $7.87 billion but fell short of analysts’ expectations of $7.93 billion.