Berliner Boersenzeitung - Shareholder sues Netflix over subscriber slip

EUR -
AED 4.325935
AFN 82.295246
ALL 97.926243
AMD 452.928874
ANG 2.108041
AOA 1080.157743
ARS 1459.669854
AUD 1.798908
AWG 2.12321
AZN 2.007149
BAM 1.955925
BBD 2.378252
BDT 144.489211
BGN 1.956381
BHD 0.443228
BIF 3509.023701
BMD 1.177925
BND 1.500096
BOB 8.139519
BRL 6.38271
BSD 1.177875
BTN 100.523408
BWP 15.600995
BYN 3.854646
BYR 23087.331819
BZD 2.365951
CAD 1.603098
CDF 3398.314319
CHF 0.935405
CLF 0.028547
CLP 1095.129815
CNY 8.440309
CNH 8.439249
COP 4689.39895
CRC 594.837921
CUC 1.177925
CUP 31.215015
CVE 110.27203
CZK 24.646321
DJF 209.743371
DKK 7.461454
DOP 70.494494
DZD 152.109697
EGP 58.022699
ERN 17.668876
ETB 163.469121
FJD 2.637615
FKP 0.862849
GBP 0.862601
GEL 3.204416
GGP 0.862849
GHS 12.190777
GIP 0.862849
GMD 84.22618
GNF 10215.651249
GTQ 9.056577
GYD 246.42571
HKD 9.24601
HNL 30.773962
HRK 7.536412
HTG 154.649859
HUF 399.203326
IDR 19062.0084
ILS 3.944853
IMP 0.862849
INR 101.068035
IQD 1542.998366
IRR 49620.09495
ISK 142.446936
JEP 0.862849
JMD 188.001985
JOD 0.835195
JPY 170.179596
KES 152.179701
KGS 103.010002
KHR 4732.301685
KMF 492.373101
KPW 1060.132584
KRW 1605.924627
KWD 0.359609
KYD 0.981663
KZT 611.718997
LAK 25381.61808
LBP 105536.527962
LKR 353.392529
LRD 236.165056
LSL 20.719221
LTL 3.478107
LVL 0.712516
LYD 6.344404
MAD 10.572174
MDL 19.841265
MGA 5300.337897
MKD 61.533923
MMK 2473.327031
MNT 4221.285995
MOP 9.523607
MRU 46.74898
MUR 52.948179
MVR 18.14445
MWK 2042.530211
MXN 21.945864
MYR 4.972067
MZN 75.340533
NAD 20.719221
NGN 1802.15516
NIO 43.342763
NOK 11.881146
NPR 160.837253
NZD 1.943451
OMR 0.452069
PAB 1.177875
PEN 4.176666
PGK 4.86531
PHP 66.570482
PKR 334.365716
PLN 4.243888
PYG 9386.598396
QAR 4.304974
RON 5.059075
RSD 117.187471
RUB 92.591703
RWF 1693.207942
SAR 4.416905
SBD 9.820272
SCR 16.592058
SDG 707.348348
SEK 11.264384
SGD 1.500092
SHP 0.925664
SLE 26.444855
SLL 24700.50455
SOS 673.142913
SRD 44.036774
STD 24380.6712
SVC 10.306657
SYP 15315.295503
SZL 20.70332
THB 38.118091
TJS 11.45473
TMT 4.134517
TND 3.431819
TOP 2.758823
TRY 46.91719
TTD 7.988509
TWD 34.086841
TZS 3109.79825
UAH 49.123132
UGX 4225.269361
USD 1.177925
UYU 47.273014
UZS 14790.942924
VES 128.951587
VND 30838.07893
VUV 139.499805
WST 3.053192
XAF 655.99882
XAG 0.031783
XAU 0.000353
XCD 3.183402
XDR 0.815852
XOF 655.99882
XPF 119.331742
YER 285.234989
ZAR 20.734144
ZMK 10602.74357
ZMW 28.533819
ZWL 379.291399
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

Shareholder sues Netflix over subscriber slip
Shareholder sues Netflix over subscriber slip / Photo: Robyn Beck - AFP/File

Shareholder sues Netflix over subscriber slip

A Netflix shareholder is seeking class action status for a lawsuit accusing the streaming television titan of not making it clear that subscriber numbers were in peril.

Text size:

A disclosed drop of just 200,000 users -- less than 0.1 percent of its total customer base -- was enough to send shares plunging after Netflix announced quarterly earnings in April.

The company anticipates a much larger drop in the current quarter -- of around two million net subscribers.

The suit filed Tuesday in federal court in San Francisco accuses top executives at Netflix of not telling investors that subscriber growth was slowing due to people sharing accounts and competition ramping up in the market.

"Defendants' positive statements about the company's business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis," read the suit filed by lawyers at Glancy Prongay & Murray on behalf of a shareholder.

Netflix did not immediately reply to a request for comment.

Executives at the company said on an earnings call that they are focused on combating the 100 million households who watch Netflix for free thanks to shared passwords.

"When we were growing fast, it wasn't the high priority to work on," co-founder Reed Hastings admitted. "And now we're working super hard on it."

Chief operating officer Gregory Peters said Netflix wasn't trying to shut down sharing, "but we're going to ask you to pay a bit more to be able to share."

In March, Netflix put out word that it is testing charging a fee to subscribers who share their accounts with people who don't live in the same home.

Competition in the streaming television market meanwhile has intensified, particularly from Disney+, with the cost of producing coveted original shows climbing as well.

To attract viewers, Netflix is preparing cheaper subscriptions that include advertisements -- which it expects to roll out in the next couple years.

The Los Gatos, California-based company has long defended its no-ads model, which set it apart from competitors such as Disney+, HBO Max and Apple.

For Pivotal analyst Jeff Wlodarczak, streaming "appears nearly fully penetrated globally post-Covid," and the companies now must set their sights on converting pirates into subscribers, gaining greater market share from each other and driving up prices."

The suit filed Tuesday is seeking to represent everyone who owned Netflix shares in the six months ending April 19, 2022, and is asking for unspecified cash damages as well as compensation for financial losses.

(U.Gruber--BBZ)