The show isn’t over for Netflix – but concerns are stacking up

Why would losing just 0.1 per cent of its subscribers cause shares in the streaming giant to fall so much? Ben Chapman explains

‘Netflix needs to generate more cash very quickly’ (AP)

After a stratospheric rise to stardom Netflix has delivered a turkey this week, warning it expects to lose 2 million customers as people cancel their streaming subscriptions.

The Covid-19 pandemic-fuelled boom in streaming services was a plot twist that had been well-trailed but which still surprised us with how suddenly it arrived.

More than $50bn (£38bn) was wiped off Netflix's value in just 48 hours after the announcement, with the share price down as almost 40 per cent at one point.