Posted by & filed under Accounting Careers, Financial Reporting and Analysis.

Description: With word this week that Netflix reported its first drop in subscribers since 2011, and with streaming service CNN+ shutting down only one month after launch, https://www.cbc.ca/news/business/cnn-streaming-1.6426163, it’s no wonder some are speculating about challenges ahead for streaming services. Rising inflationary pressures may be part of the reason for Netflix’s declines, as the video giant loses some budget conscious subscribers. Netflix is looking at a number of means to generate additional revenues by offering cheaper tiers of membership and addressing the sharing of passwords.

Date: April 21, 2022

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/future-of-streaming-1.6426016

Discussion points:

1) What percentage of your classmates are regular Netflix users? Have any of them dropped Netflix in recent months?

2) If you were an accounting official at Netflix, what recommendations would you provide for dealing with the problem of password sharing?

3) Page 13-1 of Wiley’s Financial Accounting: Tools for Business Decision-Making mentions Netflix in a the chapter-opening vignette discussing the importance of the statement of cash flows. Do a bit of research in your class to see if you can determine how the drop in the number of subscribers may have impacted the statement of cash flows at Netflix.

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