The plaintiffs accuse the Californian group of having concealed a drop in the number of its subscribers, which led to a fall in the action of Netflix.
The descent into hell of the streaming platform continues. Indeed, some American investors are filing a complaint against Netflix. The latter accuse the Californian company of having deceived them “about the decline in the number of subscribers”. According to the firm Glancy Prongay & MurrayNetflix would have “made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the company’s business, operations and prospects”.
Netflix is experiencing an unprecedented crisis. Indeed, in January 2022, Netflix announced only 8.3 million new subscribers, instead of the expected 8.5 million. Then, in March 2022, the streaming platform had 221.64 million subscribers, with a loss of 200,000 subscribers. Additionally, Netflix’s stock price fell by “more than 35%, to end at 226.19 dollars on April 20”. Which is a first for Netflix.
Netflix expects to lose even more subscribers in the coming months. Indeed, the streaming platform announced to start tests in South America to charge for account sharing, which would concern no less than 100 million households. Separately, Netflix said the suspension of its access in Russia would be linked to this decline in subscribers, as well as competition from other streaming platforms.
According to Netflix forecasts for the first quarter of 2022, the platform should have gained 2.5 million new subscribers. To date, Netflix is forced to cancel several of its projects, including the one with Meghan Markle.