netflix. shares are crushed this morning, on track for their worst loss in about a decade the core business model is called into question subscribers are leaving with increased competition. and it's dragging down the entire media sector. a shift in how investors view the streaming business what about disney, roku, spotify, and, yes, alphabet and amazon as well and the crackdown on password sharing, will it be enough >> i know you subscribe to many of these services. do you think this is an inflection point where we will see a shift away from ad-free streaming? >> i don't know. i think a comedian said it best. why don't they bundle together and we will call it cable tv he said it in mid january. think about that when netflix built the streaming business, and it did they were a dvd by mail company. they went streaming and built the model, but one of few who have gotten it right said they were not adapting and adopting like some of the later entrants into the game. hbo max, paramount plus, peacoc

i mean, netflix is outlined a few things as plans to do. james mentioned the idea of password sharing with netflix as a huge problem. there made some a 100000000 people worldwide up sort of free load on their service by of using someone else's a subscription password. they wanna try and crack down on that, which could have an effect. um, they've also said they're going to introduce a ad supported, lower tier us the model similar to what a spotify in other services used to serve. allow people to have a, a lower cost version a to watch netflix. but it would get ads with it that should add as significant number of subscribers. the courses are less valuable subscribers because they're going to be paying less per month. but i think a overall is gonna be very difficult for netflix and other streaming services to suggest that they can do a lot of growth on going forward. i think this is a much more mature market, the streaming market and i think that's going to be priced into the expectations of the stock market going forward. okay, well if you sc

ah, that's like netflix as stuck in a drama of its own making. the company's stock plummeting directly after opening on thursday, as viewers hit the unsubscribe blotted where next for netflix, we'll get the analysis from our correspondence. also coming up, as biden says, he'll ramp up domestic oil production. we visit an oil town in the north of the usa, desperate for the cash injection despite environment. it's time for the w business. now this 1st story we reported when it broke last night, but it just keeps getting worse for netflix investors reacting to the streaming giant disastrous quarterly results at share price, tanked to day get this 1st the company last subscribers for the 1st time in a decade. then it says it expects to lose 2000000 more customers in the next quarter. in other words, we may have reached peak. netflix investors fearing the streaming market is saturated. the company saw $40000000000.00 wiped off its market value in a matter of minutes. now that's nearly 40 percent of netflix as valuation gone overnight. speaking of peak

netflix investors fearing the streaming market is saturated. the company saw $40000000000.00 wiped off its market value in a matter of minutes. now that's nearly 40 percent of netflix as valuation gone over night. speaking of peak, netflix look at this just around 6 months ago. at stock was at a record touching almost $700.00. it since fallen almost 70 percent or the bigger they come, the harder they fall. well, we got team coverage on this for you 1st going to speak to arm james when he was on the new york stock exchange. and then later on we'll bring in our culture correspondence, scott rock tspra. i'm so james, wasn't this inevitable after all, netflix, his bet on constant growth instead of profits like a lot of tech firms. but that strategy was always going to run out of road sooner or later. well, if you're asking if this was inevitable, yes, it was because that netflix continued to grow, but profits haven't fallen alongside its growth. and again, i said this yesterday too many, the reading was on the wall when companies like embassies, pe

netflix certainly was the pioneer of -- netflix is an innovator. they were the pioneer of what we came to call streaming fatigue there are so many options right now. and netflix tried to build a mote in effectively the worst and most expensive way possible, to pour money into content, which i can tell you is not a good strategy. it's expensive, and there's so much of it that it's hard to compete. so they created this sort of populist product, but at premium pricing. i am not happy as a customer to find out that i was paying 20 a month to subsidize 100 million people password sharing when netflix even before going so far as introducing something like ads, netflix could be slicing and dicing the content and offering tiered subscriptions. let people password sharing pay $5 a month for just the library, or if you want to just get movies, create a tier for that i think there's a lot of innovation that could have happened all this time, and netflix prioritized growing and then pumping out lots and lots of forgettable content that to your exact point, you

one story -- we have to focus on netflix. it's not just netflix moving after hours. you look across the streaming space and some of netflix his peers we see serious declines. >> disney down by percent, paramount change after hours. the question is is it isolated and just netflix or is the big growth we saw in streaming for the pandemic over? emily: we will see that in earning reports to come. we're going to bring in a long time onto p or an executive in the streaming business. great to have you back with us. first subscriber loss in a decade. what went wrong? >> i don't think it was unexpected to a lot of executives across a media entertainment industry that netflix would have challenges. i've been saying this for the last 18 months. to have such a large miss is a bit surprising. but there are a few core challenges that it's astonishing to me netflix has not adjusted and even in the report, it doesn't seem like they are looking to. there's a lot of talk about competition from disney and hbo max and amazon and others and i do think that has some impact. but what peopl

well protected. >>> welcome back let's get another check on shares of netflix.ession. that's about the size of one hp, one kroger, or one devin energy. that's a lot netflix conference call kicks off in a few minutes our next guest says these numbers are alarming, let's bring in jared weis feld with us >> good to be here. >> is your take this is on a path or on the other side of the growth trajectory. >> we're clearly in the camp of transitioning from growth to potential value looking at subscriber loss is alarming forecast of negative 2 million into june. couple things in perspective consensus at 5 million positive subscribers across two quarters cumulatively versus negative 2.2 million just reported so we're at the point of market saturation and more concerning within the first three sentences of the shareholder letter talking about increasing impact on the business. -- increasing competition impacting the business >> i think one point previous guests have made on the show is maybe we're looking at competition too narrowly maybe the competition is cable tv mayb

thanks to netflix. chart of the day it is shedding tens of billions of dollars in market cap now down 37% about $50 billion of market cap lost right there after posting a surprise subscriber loss much more on that in a moment. >>> coming up on today's show, ceos of the two dow components driving the dow higher now hear from ibm chief and the stock sits atop the dow after strong performance in its cloud business stock jumping, and later jon moeller on impact on inflation and ability to keep raising prices from pochter and gamble. biggest decliner on the s&p netflix down 37% stock plunging after the company report add shocking subscriber loss first in more than ten years or quarterly results. mike santoli is back with a closer look for the dashboard. what are you keying into. >>> radical revaluation of the business, sara take it from me, approach of middle age happening gradually then suddenly. it's happened to netflix market saying you are now a mature company, slow growth. maybe even ex growth as they s

what is is a netflix theme park? squid games. >> they don't have one that's the point by the way they'll start talking about the linear cable businesses. >> no. >> yes, they have to they have to pivot and not talk about the money they're spending. >> how about -- >> what is the discounted cash flow going to look like? >> how about the franchises? >> that's disney. >> yeah. disney has an edge i don't know what netflix is going to do. "ozark" theme park tinder theme park. i don't know don't tell me there's music. no, we're not going to break we have not covered ibm -- >> we'll get to that. >> proctor should be higher. that's the name for the travel trust. the music is completely inappropriate. >> we have a b block this was the a block you can do those you have to pace them. >> oh, okay. i'm sorry. >> make it nice and easy we'll get to proctor best annual sales jump in 20 years. along with ibm, as jim said, we'll get calls on meta, airbnb, snap, apple, and me.or we try to build on tuesday's rally. don't go away. the rig

thanks to netflix.of the day it is shedding tens of billions of dollars in market cap now down 37% about $5

pete, you own netflix shares. >> right >> you bought netflix puts and you're selling calls against it. what do you make of josh jumping in here down 36%+ today. >> where he bought it it wasn't down 36% at that point in time if he bought it on the open it was closer to 250 and that's when it started to tumble further. i can tell you this, i agree with josh's premise, but the been thing i would disagree with is oftentimes when you see moves like this, just incredible moves to the up or down side you want to wait a couple of days oftentimes and let a little bit of that dust sort of settle and that's the only criticism i would have of that that being said, i don't disagree with him, but they've got to prove to us, scott, why things will change at netflix, because they do need to change, and i think that's the biggest takeaway for me is when i was listening to that call last night and they talked about that sharing and 100 million people estimated to be part of the sharing of the passwords of netflix. they only have 220 million people already so 100 million are piggybacking on to that and

we heard from netflix. we will hear from netflix. but look at this move by netflix. we are down and, we are down hard. this is what you have to send a letter to investors. basically, you tell them that you are no longer a growth stock. if you are looking for 2.5 million subscribers and you deliver 200,000, and the market is losing -- looking for 2.5 million some scrubbers this quarter, you tell them we are going to get -2 million, this is down 27%, and coming into yesterday's print, this stock was down by more than 40%. cue the south side. cutting the target. that is the equity market and bond market. we are looking at eight valuation story. equities driven by slightly positive real yield, briefly. the 10-year is down by seven basis points to 28686. the team is suggesting that now is the time to get in on the 10 year treasuries with a target of 225, and they believe the inflation panic, if you call it that, their words, not mine, that is what would allow long and yields to come lower through the back end of the year. that is for the next several months. tom: we'll ha

can you say that about netflix?athan: we get the luxury of waiting until walt disney numbers come out, get the disney plus numbers. if you are in the stock, this is ugly, has been all year. from new york city, this is bloomberg. ♪ jonathan: live from new york city for our audience worldwide on tv and radio, on the s&p, higher for a second day. up .4%. the nasdaq 100 up by 0.5%. yields lower by two basis points. netflix is down by 27.6%, near session lows. jp morgan, a cut to neutral. piper's and there, cut to neutral. ubs, cut to neutral. new price target, 355. tom: i missed this over the break. netflix down to a 251 level moments ago. this is a set of lower lows. we will see in the opening. diane swonk watches netflix nonstop when she is not looking at the american economy. she joins us this morning. i was taken by the outlook yesterday the united states of america, a fairly constructive pretty good economic with inflation, pretty snappy nominal gdp. are we overglooming on the american economy? diane: i don't like

are the best growth days behind netflix?nd can it actually do all these things hastings outlined on that call in order to restart growth in that fashion. >> i had so many thoughts. 700 was the high on the stock. i don't know what the market cap was there. but it's down to hundreds and change at this point it looked like the greatest growth, $500,000 that i wish comcast would have bought when we had the chance but never did. then a lot of things hastings sachld he's made definitive statements in the past that netflix will never do or wornlt do or doesn't make sense there's the old saying what do you do when the facts change you change the facts i'll give him that it would be a little bit humbling to say we'll never do advertising. now we want to offer as many solutions as possible. shares are not a beg deal until you're not growing 700,000 in russia. what do they watch in russia do they send a couple of missiles and turn on bridgerton. >> how does that work? i guess it's not the russian people and then finally, finally, andre

i like netflix, because without netflix there's no netflix in chill. and that would be a disaster. we need the pretense of watching netflix for six minutes before we start sex. otherwise, what are you going to text people,s, do you want to come over for sex?" how would that even work! ( laughter ) let's make like a retired dentist and move to florida. as you know, america's flaccid penis recently passed the "don't say gay" law. you covered your face like you've never seen-- you've seen that. you're like that's the first time. you looked at it before and you said it was flaccid. so they passed the "don't say gay" law which puts limits on how schools can talk about sex and gender issues and this has upset a lot of people including the folks at the walt disney company. because so many of their creative stuff are l.g.b.t.q. yeah. why do you think disney is always killing off straight parents. they hate breeders. think about it? it's a conspiracy. disney denounced the bill, and florida governor ron desantis, he denounced disney. and now the feud is escalating even further. >> the feud b

here's cbs' carter evans. >> reporter: the latest netflix blockbuster drama is netflix itself. >> special agent john hartley. f.b.i. >> reporter: the streaming giant lost 200,000 subscribers last quarter when it was expecting to add 2.5 million. one problem? customers are sharing passwords and netflix estimates more than 100 million viewers are watching for free. >> they love the service. we just have to get paid, you know, some degree for them. >> throwing money at productions like "house of cards" really did pay off because it helped differentiate netflix in the market. but now, it's just another streaming service. >> reporter: back in 2007, netflix stood out. today, it's buried in competition. >> this is your captain. >> reporter: 85% of u.s. households subscribe to streaming services now, paying average of $47 a month, more than $500 a year. >> it's hard for netflix to stand out and say, "hey, look, we have original programming." almost every service out there has original programming. >> when i first had netflix it was i think $7.99 a month, and now i'm over $20 a month. and i don't

thea;r netflix is a challenge ahead. . they ioneered netflix is a challenge ahead. .o it too. so they'll piled it and then netflix is they'll piled it and then netflix is the one that suffers. the content, because there _ the one that suffers. the content, because there was _ the one that suffers. the content, because there was a _ the one that suffers. the content, because there was a time - the one that suffers. the content, because there was a time where l the one that suffers. the content, i because there was a time where we are all— because there was a time where we are alljust — because there was a time where we are alljust so desperate for content _ are alljust so desperate for content during the lockdowns that we would _ content during the lockdowns that we would almost watch anything. now we have become a little bit more discerning and we have less free time _ discerning and we have less free time that— discerning and we have less free time that actually need to do going to a platform like netflix and you sit there. — to a platform like netflix and you sit th

this is the seventh time in eight quarters that netflix has missed the street's expectations netflix is partially blaming its q1 user loss on the suspension of the streaming use in russia that resulted in a loss of 700,000 paid subscribers aside from the slowdown, they're weighing in on account sharing in a letter to shareholders, combined with new competition from disney and others, password sharing is creating growth headwinds. here's the ceo reed hastings. >> working on monetized sharing. we've been thinking about that for a couple of years. you know, when we were growing fast, it wasn't the high priority to work on. now we're working super hard on it remember, these are over 100 million households that already are choosing netflix they love the service. we've just got to get paid to some degree for them. >> another key takeaway are comments from hastings on the possibility of lowering -- offering lower priced subscriptions with more advertising. >> lower price who are advertising tolerant makes a lot of sense we're trying to figure out over the next year or two but we're quite op

netflix is a building. disney is a theme park that could be used for any ride as for netflix, i refuse to go on a squid game themed roller coaster. the espn plus streaming service isessential, if you watch fantasy football disney should not be tarred with the same broad brush of netflix. you're pretty much getting the streaming service for free it is okay to punish disney for spending $71 billion to buy fox. in a massive overpay that is now in the rearview mirror and i know the ceo has been in a tough spot but i'm giving him a chance i bet he'll create value from here and at these prices i think disney is going to work and that is why i bought more for the travel trust and you know what my plan is here i'm going to buy it on the way down i'm going to be a buyer. and there is more. like proctor and gamble. today the number was instantly panned because of the raw cost explosion up more than $2.5 billion in the quarter. that is worse than death but because proctor was able to pass on the price increases as wil

netflix will have that. it got so high, and they move so far over the previous 10 years, now, everyone is catching up to them with all of this competition coming. they are trying to hold onto 10% revenue growth in the future, which for a traditional media company, was pretty good. they are getting margins back up again, moving into 2024. jonathan: we touched on this at the top of the hour and we went back and forth on this. what you make of the communication to allow the streets run with 2.5 million's subs, and the same for this quarter. to have the street at 2.5 million and then project you may it what do you make of the fact that they didn't get out ahead of this? tim: well, a couple of things. by my count, netflix has missed its guidance. it is for out of the last seven quarters. they hit it right on the head, or be that money -- number -- beat that number for many years. they did not clearly expect this number to come in solo. they would not have given that guidance number we months ago. that said, i don

this will not be a problem for netflix.is a matter of how they're going to do it. >> reporter: another way netflix can bump up that profits is by adding video games and live sports to their platform. >> their ceo did say he did not see a "profitable path in this work." i agree with that because we have seen how much money it costs to license contents. we have seen so many deals between the last 12 months between nfl and major league baseball. >> i guess we'll have to wait and see, right? so many questions. we have been hering about password sharing crack down possibly in another country. what's that all about? >> part of this is they're trying to figure out how they're going to monetize those people who are not paying. one of those of what we saw right now. another thing that's happening in three different countries right now, netflix is trying out the idea where they are allowing active subscribers to enroll into accounts with a small fee. there is no word when they'll bring it here or to the u.s. >> i guess that works. th

i want to stick with netflix.to bring in ross gerber, whose investment firm gerber kawasaki is also an investor in netflix. ross, this has got to hurt. ross: it hurts for sure in the short term. i bought a little bit myself today, to be honest. emily: why? where do you think the selloff is overdone? why do you see potential? ross: well, what has changed is in my mind, two things. number one, i don't see competition as being the biggest issue from other streamers. the competition is real life. real life is back. people are going out. people are going to vegas and disneyland. the problem is they are watching less netflix. and when you look at how many people are getting netflix for free and what that addressable market is, which is actually one of their total subscribers, netflix still has a lot of room they could grow. i think another thing a lot of people aren't talking about, is this could be a byproduct of the work from home culture. netflix has really struggled with the work from home culture, because making mo

netflix. the biggest drop since 2004, a real drag on the broader equities market, particularly in the technology sector. if i use my bloomberg terminal, look at the image that tells the story. look at the right hand side of your screen. the street was in -- was expecting netflix to add 2.5 million subscribers. no. 200,000 customers lost in the first quarter, and a forecast of 2 million customers lost in the current quarter. a big upset, and a u-turn on policy. we could see ads on the platform. wonder if the market changes its mind, because tesla is giving us a rate of hope. emily: a lot to get to. i'm joined by the founder of the wesley group, an early investor in tesla and former tesla board member. there is a lot going on here. the call is going to start a little bit later in our show. we look here what elon musk is saying life. let's talk about the headline numbers. how is tesla managing these challenges from a chip crisis to inflation to a production shut down in shanghai? steve: first, te

shares of netflix taking a dies.he streaming service started losing customers for the first time in a decade. more losses are on their way. joining as the ceo of adams fund, mark stoeckle. he is a netflix shareholder. thank you for coming to talk to us. let me ask what you take away from today's -- well, last night's announcement. is the problem with the company? is it across the sector? is the problem the u.s. consumer? is it about reopening trades? what has gone wrong for netflix? mark: can i pick e, all of the above? [laughter] i do think it is a little of all of those things. clearly the streaming business is a hard business. it was easy when netflix got into it. they had first mover advantage. but they continue to spend a lot of money. but let's look at the competitive landscape. hbo max, disney plus, peacock, you have an amazing amount of dollars chasing talent. there chasing writers, creative people, and they are trying to do the same thing. what netflix has shown in the quarter before this and yesterday is it

i want to ask you about netflix. know you were here covering that so closely yesterday a new tidbit of news last night. some people thought bill akman might see more value here given the selloff. not the case at all, he's out. >> bill ackman is out. what will we hear from all the other streamers? hbo and hbo max added 3 million subscribers this in this past quarter. maybe netflix has its own issues and hit saturation and there is hope now and some potential that we'll see these other streamers perform better than netflix did instead of shrinking they could continue to grow as hbo and hbo max did. >> there's this question of is netflix prestige tv or not when is the last time they had a prestige tv hit. it will be interesting to see how that shakes out. lastly, i know you're covering snap tonight. >> yes. >> sort of a bell weather, right? set the tone for metta. >> remember, last quarter facebook reported first. facebook reported before snap and they warned about all of these different negative impacts they were havin

the basic problem for netflix is competition.here is so much competition in the streaming arena these days. it is not just that. the younger folks have all sorts of youtube channels that they follow. i think it is become a very, very competitive space. that's typically happens with successful companies in a competitive marketplace. charles: yeah. you know it is interesting, and i don't want to get too far off track here but i find as it becomes more competitive though the alpha, product was not as great as it was. you review the movies, you tell me, better in your mind couple years ago than some of the stuff coming out now? >> i actually think some of the writing is awfully good. i'm not disappointed with what i'm seeing but there is another more economic phenomenon that may be affecting things. that is with inflation so high, we used to say we're all staying home, staycation, i think a lot of people are worried about stay-flatino, that inflation will be here for a while. you have to figure out what will you buy and cut out? my c

_ there is nothing at the moment that netflix carr— there is nothing at the moment that netflix canp people from sharing _ netflix can do to stop people from sharing their passwords and that has also diminished their model. i think it's the _ also diminished their model. i think it's the way— also diminished their model. i think it's the way in which netflix, like another— it's the way in which netflix, like another brand which had enormous success_ another brand which had enormous success during the lockdown, the world _ success during the lockdown, the world is_ success during the lockdown, the world is changing. people of other options _ world is changing. people of other options now and thank goodness for that in— options now and thank goodness for that in some ways because nobody really _ that in some ways because nobody really want to go back to lockdown experience. just really want to go back to lockdown exnerience-— really want to go back to lockdown exerience. , , , experience. just because you brought u . experience. just because you brought u- the experience. just because

scott, today netflix down about 36.5%, pe of 20, are you interested? >> listen, netflix has been the choice, it had wide subscriber base. they are really the ones that people are out there trying to compete against. now the problem is, there's a lot more streaming services out there, and peoples dollars are not going as far as they were because of the inflation, so what's happening is people are making choices now. liz: but are you buying? exactly, we know all of this. this is what we had top analysts yesterday saying beware, people are starting to just look at their household budgets and say do you know what this has to go, that has to go, i don't see a hit show i'm getting rid of netflix so do you see any bargains right now with these streamers that are all getting hit hard? >> so one of the ones i like is comcast, because not only are they into doing streaming stuff but also they are an internet providers, there's much more offered there. also disney. i personally own disney, and the thing is, i mean, this is a company, its got much more than just a

netflix _ leaving netflix? it was a surprising quarter. netflix had _ leaving netflix? quarter. netflix had been for a - quarter. netflix had been for a casting modest growth, 2.5 million new subscribers and instead lost 200,000. this is the first quarter that netflix has admitted competition may be a factor. they have donated as my streaming services set up and began spending billions of dollars on fresh content and netflix has acknowledged the competition is a factor. it's blamed a bunch of other things it has no control over. the economy for instance obviously invasion greyling and economic instability and the pace of people adopting new technology and can't control how many people want a smart tv or sign on for broadband. that i factor they indicated was the sheer number of people who are sharing their netflix accounts and estimated that 100 million households are actually freeloading on other peoples netflix accounts and it's going to be cracking down on that. it’s accounts and it's going to be cracking down on that. it's almost a victim of its — cracking down on t

and that's an artifact of being as successful as netflix is.ell penetrated in key markets. growth is hard to come by. it shouldn't be shocking to anyone that some point you reach a penetration rate that indicates that, you know, growing by leaps and bounds would be almost impossible this is another tool in the tool kit. it's one they're pulling out when it's needed i don't think it's desperate i think it's smart >> clearly, netflix's model has to change a bit, and the billions of dollars that they have been spending on content is going to come down i wonder how that's going to impact your world and all of hollywood, where basically netflix and some of these other big streamers have been dictating these very high valuations for the price of content. you paid billions of dollars for the reese witherspoon media company. do you think that's going to change here? >> i really don't. i think that the degree of demand for high quality content, kids, stories for women like hello sunshine creates, high quality content is what these streaming services del

this all come elated in netflix tumbling. we did a survey in the office this morning, how many people here piggyback off existing account holders and i have to can best, i have to be -- i have been on my brothers account for 10 years? -- 10 years. manus: i am going to report you. that is very nazi. [laughter] -- that is very naughty. [laughter] back to ukraine. one military analyst says the ukrainian troops in the country risk being encircled by russian forces. maria tadeo has the very latest. maria, give us an update on the latest escalation in the east of ukraine and also, why are you in finland? maria: good question. it is the battle for dumb bus. strategically important for both ukraine and russia. the ukrainians want to show that they can fight back, rebel. the russians and all of this feeds into the conversation about peace talks. they do believe that they are able to score a win, they will have an upper hand in future talks. ukraine so says they are knocking to trade any territories for peace. when it comes to russia,

netflix in a nose dive, shares of netflix plummeting this morning, down more than one quarter of itsue in premarket trading after the streaming giant reported it lost subscribers for the first time in at least a decade. the company forecasting it will lose another 2 million in the current quarter. wall street was expecting netflix to add more than 2.6 million in the current quarter. that's the reversal. a loss of 2 million now, the expectation was for 2.6, 2.7 million added. the stock already lost more than 40% of its value year-to-date. investors are also watching tesla. it's going to report earnings after the bell today. this as elon musk says he'll use $15 billion of his own money to take twitter private. he is saying he will make his tinder offer in 10 days. president biden meantime changing his tune on masks yesterday. >> mr. president, should people continue to wear masks on planes? >> that's up to them. dagen: then why is the department of justice, his department of justice saying it will fight to reinstate the transit mask mandate if the cdc calls for it. take a look at futur

daniel: i think it is a netflix problem. work from home beneficiaries will continue to trade down. that is catch a falling knife. microsoft, cyber, semis is going to lead tech higher. net clicks is clearly a have not. it is not a market problem. it is a company specific. jonathan: facebook was down yesterday by 7.8%. that was brutal. you mentioned apple. let's talk about the relationship between apple and the tesla right now. i think the china story is so important. no more a overnight cut gdp for china to a three handle -- nomura overnight cut gdp for china to a 3% handle. daniel: that was the key from last night because for tesla, that is the hearts and lungs of the bull story in terms of shanghai and the three week shutdown. it is ramping quickly, coming out of the gate now that it is reopening. i think that is similar to what we see with apple next week. i think the street, they are viewing this as a contained issue. overall supply chain slightly improving. daniel: how confident -- lisa: how confident are you that they c

here's cbs' carter evans. >> reporter: the latest netflix blockbuster drama is netflix itself. >> special agent john hartley. f.b.i. >> reporter: the streaming giant lost 200,000 subscribers last quarter when it was expecting to add 2.5 million. one problem? customers are sharing passwords and netflix estimates more than 100 million viewers are watching for free. >> they love the service. we just have to get paid, you know, some degree for them. >> throwin my at productionslikr stre7,se netflix stood out. today, it's buried in competition. >> this is your captain. >> reporter: 85% of u.s. households subscribe to streaming services now, pagan average of $47 a month, more than $500 a year. >> it's hard for netflix to stand out and say, "hey, look, we have original programming." almost every service out there has original programming. >> when i first had netflix it was i think $7.99 a month, and now i'm over $20 a month. and i don't know what i'm paying for anymore. >> reporter: inflation is one reason heather lefort is cancelling netflix next month after being a customer for more than a dec

do you think netflix will stick to that model?d: there was also a warning during the call that spending, content spending will be whittled down to protect margins. whatever the content strategy is , netflix is a different financial beast then what it was four years ago. we talk about loss of losses over the same period of time. now it is talking about whittling down content margins. we had had guests over the show and they raised one russian, what is the number one show you and i are talking about? in reality, there is not one. bridger 10 is a hit yes but is it a hit enough to distinguish neff licks from apple tv plus because of the success with they have with coda and the academy awards? is it enough to distinguish from disney plus which has a fan base that loves disney but is going to town on spending on broader range of content. there is no big hit out there but we are in a different growth environment. 221 million subscribers does good content to two to 400 million subscribers in the long run? there seems to be a lot of doubt

but netflix, the other one is paramount. the other has disney and they'll share if that comes to an end via whatever magical digital wall they create. get ready to see a lot less size, watching streaming content from their homes. people not only have less disposable income, but they're trying to save or is the cost of basic living increases. call it what you want subscriber fatigue in oversaturated market, consumer tension, ship world, seeing what we would call a great print, a great cancellation of streaming services. yeah. well, someone who you don't have to pay to see is james sweeney. thank you very much for that. it's been a pleasure, as always james, thank you very much. and you're up to date with d. w business. that's all for our show. but if you want more, check us out online. d. w dot com slash business. thank you very much for watching . suing on behalf of the climate, more and more citizens are taking legal action against government incorporations demanding more drastic measures against global warming. the success

netflix earnings for a real disappointment. you said it earlier, 1st quarter. 2022, losing 200000 subscribers. that's the 1st subscriber loss in more than 10 years. and netflix keep in mind was expecting an addition of 2730000 subscribers. and despite any p s that was roughly aligned, revenue also fell short of expectations. now look after that announcement shares thinking more than 23 percent. an after hours action right behind me here on wall street, a lotta taken and a big shock for a lot of people. okay. and it might not stop there as well. that's the problem here . we've heard of the so called great resignation in the united states. could we see now the great cancellation from subscribers, streaming services, video services, just like netflix in the us? well, you call it the great reg resignation of the u. s. economy. i call it the big quit and if you're wondering why did people resign and leave their jobs and mass? because stag the wages, your job, the satisfaction, other job options, rising cost of living and all of thos

but netflix, the paramount. the other has disney, and they'll share if that comes to an end via whatever magical digital wall they create, get ready to see a lot less size, watching streaming content from their homes. people not only have less disposable income, but they're trying to save more as the cost of basic living increases. call it what you want subscriber fatigue and oversaturated market, consumer attention ship. we're seeing what we would call a great print, a great cancellation of streaming services. yeah, well someone who you don't have to pay to see is james sweeney. thank you very much for that. it's been a pleasure. as always. james, thank you very much. and you're up to date with d. w. a business. that's all for rochelle. but if you want more, check us out online, d, w dot com slash business. thank you very much for watching a young here are an important mission. i'm sad how people me and being caching that be with animals and nature. ramayo loved them more than anything else in the world . the 1

. >>> a reality check for netflix. losing subscribers for the first time in a decade. the possible new plan to add commercials. >>> plus, the debate over tipping. are we doing too much of it these days? >>> and a special fist bump for one young fan at the nba playoffs. >>> good wednesday morning, everyone. we begin with growing confusion about mask requirements on planes and public transportation. >> there could be a new legal battle brewing. the justice department says it it may appeal a judge's ruling that struck down the ruling but it is taking a wait and see approach. >> in the meantime, more airports and transit systems are announcing their own rules. here to break it all down for us is abc's ike ejiochi with the very latest. ike, good morning. >> reporter: good morning, andrew. there's still a chance this ruling could be appealed by the department of justice, but the agency is waiting to see what the cdc determines moving forward. this morning, the federal mask mandate on planes and public transportation is gone. >> masks now optional. >> reporter: a federal judg

netflix has dave chappelle on their platform.de back to sanity and back to making fun of anything and everything. nothing is off limits in the world of comedy starting with dave chappelle's special, sticks and stones. then the closer. that caused a lot of heat protest around us who runs contact on netflix. remember there was a protest of people that work -- it doesn't have anything to do with people going far left, was going woke. if there is some content on there that is super old lib, but it is just the fact that they thought they had begun to spend way too much money on the content and they never got to the subscriber level where the amount of money they are spending makes financial sense. an analyst -- i don't mean to take up all the time, but robert cadwell was on mornings with maria was upholding. netflix hold this based on the 700 million subscriber level. netflix can barely make it above $200 million. the content makes no sense. they had spent millions, hundreds of millions of dollars in the past five years trying to win

. >>> while popeye's is growing, netflix admits it's shrinking. that is not good news if you are a shareholder of the streaming service. andrea fujii has the details. >> reporter: overnight, netflix stock plunging as much as 25% after the streaming powerhouse announced it lost subscribers for the first time in more than a decade. >> just when you think it couldn't get any worse it does. >> reporter: netflix blaming more competition, illegal password sharing and russia's invasion of ukraine. the company ended the first quarter with 200,000 fewer subscribers than the end of last year. >> we're seeing a lot of the subscription fervor that was going on during the pandemic, we're seeing that starting to slow down and people are getting more intentional with what they're subscribing to. >> reporter: after increasing their monthly cost in january, the basic netflix plan is now about $10. but according to a new study, more than 60% of people think they shouldn't have to pay more than $7.50 for a streaming service. >> there is a potential for a considerabl

ef like what is on sex education on netflix. , ., «e ., ., netflix. lot _ netflix. lets talk about channel 4 and of course a lot of— netflix. lets talk about channel 4 and of course a lot of people - netflix. lets talk about channel 4 and of course a lot of people are| and of course a lot of people are talking about in this country particularly about plans to sell channel 4 and the privatisation of channel 4 and the privatisation of channel 4 and the privatisation of channel 4 has been up till now very controversial. where do you think it is going to go from here?— is going to go from here? welcome that the government _ is going to go from here? welcome that the government is _ that the government is very keen to privatise channel 4 and nobody else seems to be very keen for that to happen so the channel themselves, production companies that make all the content on the channel, and all advertisers have basically said they don't think it's a particularly good idea. today the government response to the consultation and had 55,000 responses in something l

jack: it is not looking good for netflix. if you didn't sign up for netflix during a lockdown pandemic you were never going to sign up and looking ahead to earnings it could be a big move and it sure was. jack: i wasn't sure which direction but we found out quickly, first subscriber decline in a decade and there could be a bigger subscriber decline this quarter. investors, the stock lost 35% day. more than a billion dollars on shares on that decline sold this past week a lot of $400 million but told investors he wouldn't be surprised if stock does well, it is called hedging, he is a hedge fund manager. netflix has a plan to return to growth, a cheaper ad supported subscription, to crackdown on password sharing. if your password is wrong, lover one hundred 23, better change it, pretty hackable. the new plan makes sense, you need to make more money with a cheaper tear than a more expensive tier with no ads but you don't set up an ad business and add business overnight, netflix says it could take two years. jack: disney, you don

ahead, netflix nixed more and more analysts bearish on netflix.hat's wrong with the streaming giant? >>> plus, taking a cut meta planning to allow - >> virtual asset sales wait until you hear the cut tscebook will be taking of the nf stay with us leveraging gold, a strategic and sustainable asset... the path is gilded with the potential for rich returns. when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web. because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade >>> welcome back let's get caught up across these markets on stocks, bonds, commodities and why the street is so down on netflix ahead of the earnings next week let's begin with a check on the stocks we have been hanging on to the solid gains in the afternoon and the nasdaq is leading the way despite another hot read on infla

. >> netflix shares plunge with the loss of customers leading to changes in the business model. >> we start with tough times, netflix stock lost more than one third of its value in a single day of trading. that is because netflix said it lost subscribers for the first time in more than a decade. >> devin fehely says the streaming service will crackdown on those that share subscriptions . >> netflix was hampered by investors amid reports at the streaming service is shutting subscribers and it was a dramatic rehearsal for the original streaming come to me. >> the stocks tumbled after the company announced that it lost 200,000 subscribers in the first quarter and expected to lose 2 million more. >> the subscriber count has grown steadily and in big gulps for almost a decade and now we are seeing it come back down. >> the marketwatch tech editors of the streaming landscape is changed and it is more crowded hulu, paramount plus, amazon prime and apple tv all competing for subscribers. >> most of my streaming services i share >> it's a commonplace and frowned upon by streaming services repr