Netflix’s Meg Deal Turns Off Viewers As Shares Plummet

Shares in Netflix plummeted by 35% on Thursday, following a wave of subscribers abandoning the streaming giant.

Experts have warned that Netflix will struggle to bounce back from the over $50 billion dropped from its market value after the streaming service hiked prices.

This comes after the Duke and Duchess of Sussex signed a deal with Netflix worth $100 million back in 2020, but have yet to produce any finished content.

Professor Selly Ottens, a marketing expert specialising in how the Royal Family brands itself, suggested the content the Duke and Duchess are generating for the streaming giant lacks originality, as viewers will likely already be familiar with the events before the documentary is released.

Professor Ottens told Express.co.uk she was perplexed by the filming of well-reported events, to be rehashed in new documentaries.

She questioned the content value of such snippets, and the inherent value the Sussexes could bring to the streaming service.

The Duke and Duchess of Sussex have been accused of letting their ethics take a backseat and even fly out the window when there are dollar signs in the preview.

Piers Morgan’s wife Celia Walden issued this statement in her latest interview with GB News host Dan Wooten.

She was quoted saying, “I think where morality and ethics are concerned, both of these things tend to fly out the window when there’s dollar signs.

Things get very embarrassing I mean, this has just been unanimously agreed that it is a preposterous thing to do.”

On Wednesday, US investor William Ackman pulled out from his over $1 billion investment in the company, taking a $400 million hit.

He said his investment felt shaky after Netflix announced changes to its business model.

Mr. Ackman said in a statement, “While Netflix’s business is fundamentally simple to understand, in light of recent events, we have lost confidence in our ability to predict the company’s future prospects with a sufficient degree of certainty.”

Netflix announced earlier this week it would consider toughening up rules on password sharing.

An estimated 100 million households access Netflix for free by sharing passwords.

The move was prompted by a steep drop in subscribers to the service, meaning the streaming giant failed to come within reach of its targets.

Netflix said its subscribers had fallen by 200,000 in 2022.

Netflix told shareholders revenue growth has slowed considerably.

They said, “Our relatively high household penetration, when including the large number of households sharing accounts, combined with competition, is creating revenue growth headwinds.”

According to Professor Ottens, the content value of the Sussexes’ documentaries is questionable.

She said, “I’m not sure how much inherent value Harry and Meghan are bringing to Netflix, there is some discussion that they are in fact contributing to the disinterest in, and market devaluation, of Netflix.”

She also mentioned that the events in real life, such as the Invictus ceremonies last year, have already been reported and questioned the need for rehashed content.

In fact, Ottens compared the content to the Kardashian programs, where the fights or content are not viewed prior to airing.

She suggested that viewers only hear about them, unlike the Sussexes’ documentaries where well-reported events are filmed and edited again.

The streaming giant has been struggling to keep up with its competitors, and the recent developments have not helped.

The company’s revenue growth has slowed considerably, and its high household penetration combined with competition is creating revenue growth headwinds.

The move to toughen up rules on password sharing is seen as an attempt to increase revenue and retain subscribers.

However, it remains to be seen if this will be enough to turn things around for the streaming giant.