Netflix’s latest quarterly report is not pretty. In fact, it is the first time that the streaming giant has had a quarterly loss of paid domestic subscribers in over eight years.
What did Netflix potentially do wrong the last quarter to warrant such a significant downslide? The loss is eye-opening, Netflix “on Wednesday reported a loss of 126,000 domestic paid subscribers compared with analysts’ expectations for a 352,000 gain. Netflix also missed its own forecast for global subscriber growth by 2.3 million.” [CNBC]
Would Netflix taking a stand against Georgia’s pro-life “heartbeat bill” have anything to do with it? I have no dog to pick in this fight but, If you remember, Georgia’s heartbeat bill was signed into law by Gov. Brian Kemp on May 7th. The law, which should go into effect on January 1st, would impose restrictions on abortions after a fetal heartbeat can be detected.
When the Heartbeat bill was passed, Netflix threatened to stop doing business in the pro-life state. Ted Sarandos, Netflix’s chief content officer, told Variety:
It’s why we will work with the ACLU and others to fight it in court. Given the legislation has not yet been implemented, we’ll continue to film there, while also supporting partners and artists who choose not to. Should it ever come into effect, we’d rethink our entire investment in Georgia.
This, consequentially, had thousands of pro-life customers expressing their outrage. Before the release of the shareholders report, Netflix’s shares were up more than 35%. Now, the stock will open at its lowest price since January, “shaving $20 billion from its market cap and bringing it to about $138 billion,”
Fact of the matter is this; Half the country is pro-life. The vast majority want abortion limits. Netflix’s pro-abortion stance was bound to cause backlash. Is it the reason why subscriptions have been down in the last quarter? Well, it definitely is part of the reason, but, like many of these stats, there must be other factors, but this is a pretty big one.
Of course, we all know the rule: take these reactions with a grain of salt rather than treating them as gospel. Still, I will say that the film tested like gangbusters earlier this year, and Lionsgate clearly has confidence.