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Netflix’s Uncertain Q2 Earnings Shows How Relying on Immoral Content Does Not Ensure Long-Term Success

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Netflix’s Uncertain Q2 Earnings Shows How Relying on Immoral Content Does Not Ensure Long-Term Success

By Movieguide® Staff

Ahead of Netflix’s release of second-quarter financial numbers, the largest streaming company in the industry warned investors that they should expect a drop in subscribers amid an uncertain earnings season.

According to Guggenheim analyst Michael Morris, the Netflix report will carry “wide-ranging implications” for the overall health of the media ecosystem.

Although Netflix still leads the way for streamer’s subscriber numbers with 222 million worldwide, recent subscriber losses have resulted in a plummet in market value for the company.

According to Deadline, since Netflix’s all-time high in 2021, around two-thirds of the “company’s market value has been destroyed.”

Deadline reported: “Wall Street has not only been scrutinizing the sudden subscriber plateau but also the traction of streaming rivals, not only former programming suppliers like Disney, Warner and NBCUniversal but from deep-pocketed tech foes like Apple and Amazon.”

Whether the company’s expected 2 million lost subscribers come to fruition in Q2, analysts suspect that Netflix will lose subscribers either way.

Goldman Sachs analyst Eric Sheridan said: “It remains clear that Netflix remains mired in a period of post-pandemic growth normalization while also seeing increased industry wide competition.”

One of the primary differentiating factors between Netflix and its competition is its constant promotion of mature content, with little to no family-friendly projects.

Movieguide® previously reported:

As the most prominent streaming company in the game, Netflix never backed down from taking risks and promoting the content of all kinds to its over 220 million users.

However, promoting explicit sexual content like BIG MOUTH or CUTIES led to many outraged subscribers and even some lawsuits against the streaming giant.

After Netflix shares plummeted to their lowest point since 2018, it is clear that some subscribers are fed up with the company’s insistence on catering to immoral projects.

While CEO Reed Hastings blamed increased competition among streamers, Disney+ and Amazon Prime leading the way, it is not a stretch to assume that Netflix’s past flippancy with mature content could also contribute to its first subscriber loss in over ten years.

Should Netflix hope to gain back lost subscribers and attract new ones, an offering of more moral and family-friendly content is essential.

Recent shows like STRANGER THINGS 4, SQUID GAME, and BRIDGERTON are prime examples of Netflix’s willingness to champion immoral content while trying to target younger audiences.

Movieguide® previously reported:

Even so, the absence of the f-word and its focus on the adventures of a group of middle schoolers earned the show a TV-14 rating.

However, after STRANGER THINGS wrapped Season 4, with the prospect for Season 5, the show went from toeing the line of appropriate television to diving into explicit content.

According to Parents Television and Media Council, research of all four seasons of the show revealed that foul language, violence, and sexual content all increased.

“The Parents Television and Media Council (PTC) analyzed the program content of each episode of all four seasons of Stranger Things utilizing content filtering data from the streaming video company VidAngel,” the report reads. “Comparing the program data from all four seasons of the hit Netflix series, PTC found significant increases in the frequency of adult and objectionable content in almost every category.”

From Season 1 to Season 4, the data showed a 217% increase in profanity, a 307% increase in overall violence, and a staggering 756% increase in graphic violence.

While the first three seasons of STRANGER THINGS maintained their TV-14—despite there being multiple f-words in season’s two and three—Netflix finally conceded and rated the latest season TV-MA.

Unfortunately, very few viewers were warned of the steep increase in explicit content after years of marketing to younger generations.

Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.

What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.

You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.

Movieguide® is a 501c3 and all donations are tax deductible.


Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.

What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.

You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.

Movieguide® is a 501c3 and all donations are tax deductible.