Tesla CEO Elon Musk tore into Netflix as the streaming service’s shares dropped.
He responded to a tweet issued by Slashdot, saying, “Netflix Shares Crater 20% After Company Reports it Lost Subscribers For the First Time in More Than 10 Years.”
Musk tweeted, “The woke mind virus is making Netflix unwatchable.”
The woke mind virus is making Netflix unwatchable
— Elon Musk (@elonmusk) April 20, 2022
CNBC reported Wednesday Netflix shares dropped over 30%.
CEO Reed Hastings said during an earnings call the company is considering the idea of adding a cheaper tier to maintain more users, as CNBC noted.
“Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription,” Hastings said.
He added, “But as much as I am a fan of that, I am a bigger fan of consumer choice, and allowing consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense.”
Michael Nathanson, a media analyst at MoffettNathanson, told CNN, “What worked until this point may not be working anymore,” adding, “The world’s changed.”
According to CNN, Netflix anticipates it will lose another two million subscribers in the current quarter.
Zak Shaikh, vice president of programming at research-based media firm Magid, told CNN the streaming service needs to answer two questions.
“How do they turn the ship around and start increasing subs again, and how do they generate more revenue per sub?” Shaikh said.
He added, “I think it comes down — as it often does — to content. Netflix just has to remember what made it so special was that it had the type of content and volume of content you couldn’t get anywhere else. That’s the value proposition they need to return to.”
Shaikh suggested this is “just the reality check that is inevitable for an industry leader facing multiple new entrants to the marketplace.”
