Netflix and its current financial problem (part 1)

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In the year 2010 12 million people paid Netflix subscription at 9 dollars each, then they created the concept of streaming and so people could see what they wanted when they wanted, to that business model adds the health crisis of 2020 that would make Netflix have profits beyond the dreams of its owners.

It is a reality that Netflix has been the most profitable stock of the S & P 500 in the last decade having a return on investment of 4000%, surpassing the new york time, we are talking about that if a person invested a thousand dollars in Netflix in 2010 for the year 2019 would have 42 thousand dollars and that's not counting the distribution of dividends.

Netflix has not been a perfect company, it has made important mistakes like when it divided its services with something called quickster, in 2011, this made the stock fall 75% because Netflix charged more for its services and many canceled the service.

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As we already know Netflix business is entertainment, they offer us series and movies that in many countries you can watch for free, but Netflix gives the option to marathon and watch everything you want, but the reality is that now there is more competition and during the pandemic many projects of movies and series were stopped, so Netflix reign, but now Disney+ is a danger to Netflix.

By 2020 Netflix had 36 million subscribers and in 2021 added 18 million more, thanks to the squid game and the action reached $ 700, a success for the company, but while they expected 7 million more new subscribers only 2.5 million subscribed, something negative for the company.

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Among so many successes the truth is that Netflix has lost since December 2021 until today's date 165 billion dollars of market capitalization, so the company faces many challenges ahead, the main reason is the competition but it is a topic that we will address in a second part.

Thank you for reading



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