this post was submitted on 24 Oct 2026
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Technology
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Their stock is down 40% YoY and they are cutting thousands of staff including their director of content. Looks like it bought them 24 months of bluster and then their watchtimes plumetted.
capitalism machine prioritizing short term over everything else, working as intended.
There's no reason to believe that that's related to the family plan enforcement, so it's really not relevant to this discussion
It is relevant to the stock price discussion, which was the dfense of the family plan enforecement.
The metric of interest in the context is the effects on churn/subscriber conversion, in which Netflix significantly overperformed following the enforcement of family plan rules.
And has since underperformed. Their watch times have not followed their subscriptions and investors are concerned.
So the enforcement resulting in more subscribers could be seen as short lived given the results for netflix.
A drop in consumption could be equally well explained by lacking content quality, leading to disinterest in consumption.
Arguably better explained, given that they laid off the director of content.
Now that people can't share maybe they're more discerning about keeping that subscription?
I'm not really clear on what you mean here - Netflix are not having any trouble with their subscriber growth/churn numbers
But their subscriber growth is not increasing their market share or stock price.
Which is why you would do that.
It is increasing their revenue, which is the intended effect
And investors dont view that revenue as sustainable or capable of further growth. They damaged their brand for temporary growth
Again, you're drawing conclusions from the event that are not supported by the facts.