The streaming platform is going through one of the most difficult moments in its history, going from being worth 306,000 million dollars, just in October 2021, to just over 78,000 dollars, on the United States stock market.
Netflix’s first quarter resulted in a loss of 200,000 subscribers, a trend that may not be reversed. According to the recently published ‘Global Entertainment & Media Outlook’ report by PwC, the SVOD (Subscription Video on Demand) sector in the United States will only grow 13% in terms of value. A rate lower than the 19.5% growth observed in 2021 and 27% in 2020.
Revenue from this industry will also contract about 8% in 2022, according to the report, as people return to life outside the home, leaving behind the confinement caused by COVID-19.
Netflix isn’t the only tech company cutting staff, Tesla, Coinbase and others have done the same, as recession fears herald tough times for publicly traded companies.
Recently, Elon Musk announced a 10% cut in his workforce and the suspension of all new hires for Tesla; although he later clarified that only 3.5% of employees would be affected. The tycoon also ordered the firing of ‘rogue’ employees at SpaceX, who complained about him through a letter.
Expansion reached out to Netflix for its stance on the layoffs but declined to comment.