Due to its steadily expanding member base, the entertainment giant’s Netflix has generated over $143 billion in revenue over the years. Meanwhile the streaming juggernaut’s market value fell more than $167 billion from the previous year.
New analysis shows that despite years of consistent growth, the streaming juggernaut is still losing customers, which has already reduced its market capitalization by billions of dollars. Over the years, Netflix has steadily raised its fees to the point where its “premium” subscription costs $20 per month, giving competitors an advantage.
The massive streaming service has 221.8 million paid subscribers worldwide in December of last year. Its market valuation was about $260 billion at that time, down from $267 billion two months earlier, according to analysis made by Trading Platforms.
However, the company’s share price fell to a multi-year low following the release of the first startling subscriber loss in April, wiping more than $50 billion off the market cap.
By the middle of 2022, 220.6 million individuals were still paying for Netflix services, a significant decrease of 1.2 million. At that time, the streamer’s total share value fell to $77.9 billion, a 70% decrease in just eight months.
Even though Netflix’s market cap has grown since then and last week reached $99.9 billion, this still indicates a staggering 62% decline from the previous year.
The streaming juggernaut also revealed a significant profits loss this year, in addition to losing subscribers and casting doubt on its capacity to expand.
Analysts had predicted $8.04 billion in revenue for Netflix’s first quarter of 2022; instead, it brought in $7.86 billion. The business recorded revenue of $7.97 billion for Q2 2022, up from $7.34 billion for the corresponding period in 2021.
Netflix did, however, make $15.8 billion in revenue in the first half of 2022, which is 9% more than during the same period in 2021, despite the earnings shortfall, according to the latest data analysis of Trading Platforms.