Netflix Is Being Sued Over Its Subscriber Numbers
Netflix's numbers have dipped drastically, and it looks like shareholders aren't very happy about it, meaning those at the top are suing the streaming service.
05th May 2022 09:14
Images: Netflix
Netflix Is Being Sued Over Its Subscriber Numbers
Netflix's numbers have dipped drastically, and it looks like shareholders aren't very happy about it, meaning those at the top are suing the streaming service.
05th May 2022 09:14
Images: Netflix
Netflix hasn't exactly had the most positive few months. The streaming giant revealed it was gearing up to drastically crack down on password sharing after it was discovered it was losing millions of dollars. It also announced that it'd once again be cranking its prices up, meaning Netflix has equally gone down in users' estimations.
It's not looking good for Netflix, the streaming service that was once the cream of the crop and is now falling to the wayside - and now it's in big trouble with its shareholders. Could it have something to do with losing billions overnight?
Netflix Is Getting Sued For Its Subscriber Numbers
Whoops. It looks like Netflix is in trouble with its shareholders, as Vulture reports that the corporation is being threatened with legal action for supposedly misleading those funding the company.
Investors claim that Netflix attempted to deliberately mislead them by insisting it would be able to make new subscriber numbers, when the first quarter of 2022 saw it lose over 200,000 subscribers. This number is then expected to exceed this in the second quarter. Yikes.
A number of shareholders have claimed that the company failed to let them know this was coming, amidst accusations that Netflix had actually predicted it all along, with a lot of the numbers dipping as a result of the easing of restrictions around the pandemic. And it sounds like Netflix is cutting some serious corners already.
Is Netflix Getting Desperate?
As numbers decline, Netflix is starting to deploy some tactics to pinch its pennies - and it's leaving creators in the cold. A lot of animation studios have been internally canned mid-season, leaving animators without work. Netflix has similarly severed ties with its attempts at the editorial market with the site TUDUM - wiping out a swathe of writing jobs there with little notice.
Even though Netflix was once a company that had culture in its hands, is beginning to scramble. It's clearly nervous, and it looks like very soon, users are going to pay the price. There are sure to be even more who duck out now while they still have the chance. As for the shareholders, Netflix should prepare to feel their wrath.
About The Author
Joseph Kime
Joseph Kime is the Senior Trending News Journalist for GGRecon from Devon, UK. Before graduating from MarJon University with a degree in Journalism, he started writing music reviews for his own website before writing for the likes of FANDOM, Zavvi and The Digital Fix. He is host of the Big Screen Book Club podcast, and author of Building A Universe, a book that chronicles the history of superhero movies. His favourite games include DOOM (2016), Celeste and Pokemon Emerald.
