Those who were rightfully outraged about Netflix putting the movie “Cuties” on its platform are also right to wish to see Netflix suffer for its decision.
The movie “Cuties” is a pedophilic film about young girls who form a twerking dance troop after watching videos online. The film features the girls mimicking sexual acts during dance numbers that happen several times and go on for way too long.
If you’d like to hear more about this movie, I go further into detail of it in the article linked below.
The outrage around “Cuties” caused a mass call for Netflix to be boycotted with urges to cancel subscriptions. It was so large that it trended on Twitter.
On Monday, news began to circulate around that Netflix has now lost a whopping $9 billion after the boycott found its legs.
But did it actually lose that much money?
It certainly deserved to, but let’s take a look at the numbers.
Firstly, the $9 billion drop in price has to do with the drop in Netflix Inc’s stock price which did take a big dip after the “Cuties” controversy came to the forefront. So yes, the company did lose around $9 billion in one day in the stock market on September 11 when the calls for boycotting the streaming service became the most intense.
While the stock price did fall, to blame it on the “Cuties” movie and the subsequent Netflix boycott would be inaccurate.
While Netflix saw a big drop in its stock price, so did many other major tech companies on the Nasdaq.
Here is Amazon’s:
The Nasdaq itself took a very similar looking dive that day.
While I would like to tell you that the reason Netflix lost so much in stock price is because of the backlash to the pedophilic movie now parading across its library, it’s just not the case.
What was the purpose behind the drop? According to Forbes, the market was correcting itself as many tech companies, including Netflix, were wildly overpriced:
With tech stocks leading the market higher in recent months, the ongoing sell-off is just a correction, says Mark Haefele, chief investment officer at UBS Global Wealth Management, in a recent note. “The sector is expensive, but not in a bubble,” he said, adding that a correction “need not signal the end of the rally.” While the U.S. tech sector has climbed to surging valuations, they are still “well below levels seen at the height of the dotcom bubble of the late 1990s levels, when the index forward P/E rose above 70x.”
Right now our economy has slowed due to the Coronavirus outbreak causing a countrywide lockdown, and with some blue states still effectively preventing their reopening in order to keep the economy from growing and giving President Donald Trump one of his greatest weapons back to him, the tech sector was growing in price like our economy had never shut down.
The truth is, we probably won’t know how much damage the Netflix boycott did till next month as the monthly subscription numbers still have to roll back around. Once they’re out, we’ll get to see how much damage was actually done.
Be forewarned, however, that the damage that Netflix sustained may be underwhelming. Netflix is the largest subscription streaming service in the game.
According to YouTuber Academic Agent, where this report was first seen, Netflix rakes in over $22.6 billion a year. In order for Netflix to find themselves operating at a loss, some 37.2 million subscribers would have to cancel their subscriptions.
It’s highly unlikely that the streaming service lost that many subscribers over “Cuties.” It’s unlikely that itx lost even a quarter of that number in subscribers. While people are certainly outraged and disgusted, canceling a Netflix subscription in the age of “cutting the cable” would be just like cutting your cable before the age of the internet.
People want to watch television and Netflix is the primary source of entertainment for millions and while they hate it for uploading this trash, they like being entertained by it more than they hate it. In the same way, many people despise Apple for its human rights abuses but still use Apple products because they like the ease of use and familiarity more than they feel their own outrage.
I could be wrong and the world withdrew at least enough of their financial support that Netflix stock takes yet another big dip, but I doubt it.