 Netflix is in serious trouble. It could die a long, slow and painful death or it could die very sharply or they could turn things around and be very successful. We're going to go through the video today about why Netflix could fail. We're going to go through all the different reasons for this in the short content video. Please smash the like button if you like content like this and let me know in the comments section down below on which company you would like me to cover next. I was thinking meta and the success of meta. So let's go through this. The original story for the first time in more than a decade, Netflix said it lost subscribers in a quarterly earnings report, 200,000 of them to be exact. Across the US and Canada, it lost 640,000 subscribers and saw additional losses in every other region. Now why is this? It's what I like to call in business as a domino effect whereby one bad decision cascades into several bad decisions, sending this once innovative company onto the downward spiral of inadequacy and destruction. So why are they failing? Firstly, we have the idea that many people are unsubscribing. We must find out why this is. Netflix continues to hike its prices whilst offering less content. This is the first reason. This creates a bad value proposition for the customer. Ultimately, the consumer is asking but if this is justified, expected or matched with some added value by the company that then they can retain those customers and the customer base. Simply put, Netflix is losing subscribers because it's losing its content. One of the core unique selling points on why Netflix was originally successful and killed competition like Blockbuster was high quality content on demand with variety. We are increasingly getting unfortunately low quality content on demand. This is not matching up with the original unique selling point of the business. Secondly, other on demand services are innovating in the new technological web 3.0 virtual reality landscape we will find ourselves in when mass adoption of these technologies occur and it is occurring today. For example, Netflix virtual reality app only allows one room and one screen size at the recording of this video and it is not the best resolution. Whereas other companies and apps like Bigscreen offer on demand movies in a truly virtual reality cinema experience often in 3D. Companies like Amazon Prime are offering better virtual reality experience than Netflix. Although this could be better but that's another video. Netflix needs to find ways to innovate to be fresh and to be remember the roots in which they came from and what all started it, innovation in the digital age. Thirdly is the dishonest making of excuses to its companies shareholders. This is only my opinion though but I do think that they gave one of the reasons for the fall of membership and revenue as password sharing. This is completely ridiculous because it could be applied to any on demand service or many others. You're not the only ones that this issue could occur with, they are not an exception to the rule. In addition consumers would be happy to appear if the value for the money was there in the first place. Another problem and it's a very obvious one which is why I didn't talk about it right at the start of the video but it's competition right? You're seeing many alternative competition. Netflix used to be the main game in town and now it's not. We have Hulu, Peacock, Disney Plus, Amazon Prime and the field is becoming increasingly competitive and if the competition offers more value customers can now switch to these competitors. Michael Porter of Porter's Five Forces a great business strategist explained in his theory that if an industry becomes more competitive then the bargaining power is on the buyer's side because they can switch to the alternative if they feel dissatisfied. This is the continuing problem with Netflix increasing the prices. Finally the price hikes. I understand we have inflation so companies do need to rise some prices but in a world where by cost of living gets tougher people's luxuries in entertainment suffer and sometimes monthly payments are the first aspect people cancel to save money. Now the question is what do Netflix need to do to counteract what is going on? Firstly they should offer a strict back version of membership or lower costs whereby there is elements of customization for example the ability to watch TV shows only certain TV shows or a certain genre of film that you much prefer over other genres and have a cost related to that low price high customized environment. I think customization and personalization should be the next cultivated innovation technique that Netflix should use. Secondly they need to improve the damn virtual reality app and invest more in 3.0 and look towards how you can maintain competitive advantage in a now crowded feel. Go back to the roots and think about technological innovation. Finally and very simply what they should do is create more content. So now finally what do I think about Netflix? Where do I see it going in the future? It could end up dead if it's not careful but if it continues to innovate and starts to innovate a lot more I do think that it's still got some potential but I think Netflix is at a crossroads right now and I don't know what the future holds for it. Now if you enjoyed this video please leave a like I really do appreciate that subscribe to the channel and let me know which company you would like me to talk next in these videos thank you.